The United States and South Korea agreed to revise their six-year-old trade pact with a side deal to deter competitive currency devaluation by Seoul and with concessions for U.S. autos and pharmaceutical companies, Trump administration officials said on Tuesday.
They told reporters that the deal includes provisions outlined by South Korean officials Monday, including a 20-year extension of the 25 percent U.S. tariff on pickup trucks and a doubling of the Korean import cap on autos that meet U.S. specifications to 50,000 per manufacturer per year.
The agreement, cobbled together quickly with only a few rounds of negotiations under Trump's threat of withdrawal, will include a side letter that requires South Korea to provide increased transparency of its foreign exchange interventions, with commitments to avoid South Korean won devaluations for competitive purposes.