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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea. The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President. Additionally, South Korea will purchase $100 Billion Dollars of LNG, or other Energy products and, further, South Korea has agreed to invest a large sum of money for their Investment purposes. This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting. I would also like to congratulate the new President on his Electoral Success. It is also agreed that South Korea will be completely OPEN TO TRADE with the United States, and that they will accept American product including Cars and Trucks, Agriculture, etc. We have agreed to a Tariff for South Korea of 15%. America will not be charged a Tariff. I would like to thank the Trade Representatives who came forward today. It was an Honor to meet them, and talk about the Great Success of their Country!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because The announcement of a trade deal between the U.S. and South Korea could boost stocks like Cheniere Energy Inc. and Exxon Mobil Corp. due to increased energy exports, while General Motors Company might benefit from improved access to the South Korean market. The Energy Select Sector SPDR Fund and Materials Select Sector SPDR Fund may see positive impacts from increased energy and material trade, whereas the Consumer Discretionary Select Sector SPDR Fund could experience volatility due to tariff implications. The iShares MSCI South Korea ETF might face fluctuations based on South Korea’s investment commitments and tariff impacts.
Here are some of the stocks that might be affected:
Cheniere Energy Inc. ((LNG)),
Exxon Mobil Corp. ((XOM)),
General Motors Company ((GM)),
Energy Select Sector SPDR Fund ((XLE)),
Materials Select Sector SPDR Fund ((XLB)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)),
iShares MSCI South Korea ETF ((EWY)).