US, South Korea have agreed on new trade deal: White House

The United States has reached a trade deal with South Korea, the details of which are expected to be announced shortly, the White House has said.

"We have come to an agreement in principle, and we expect to roll out specific details on that very soon," White House Press Secretary Sarah Sanders told reporters at her daily news conference.

No other details were immediately given.

However, Commerce Secretary Wilbur Ross, in an interview with TV channel 'FOX Business', hinted that South Korea might need to reduce its steel and aluminium exports to the US after the deal.

"It accomplishes our purpose about reducing the steel and aluminium exports to us, 30 per cent is a big reduction. And its about what we would have accomplished with the tariffs, had the tariffs instead gone on," he said.

Ross said the deal was a proof that a trade war could be avoided.

"The real key is, it's a peaceful deal, it's a negotiated deal, it works for both sides," Ross said.

According to reports, the trade deal would grant American automakers improved market access and limit Korean steel exports to the US.

In return, South Korea will receive exemptions from the hefty tariffs 25 per cent on steel and 10 per cent on aluminium -- that Trump announced in mid-February, the TV channel said.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

TAGS:

Economy