Trump suspended the loophole in February for China, Mexico and Canada, but he reinstated it to allow Commerce Secretary Howard Lutnick to establish protocol for collecting tariff revenue on low-value imports that would be eligible for the exemption.

South Korea also agreed to invest $350 billion in the United States in projects selected by Trump and to purchase energy products worth $100 billion.

The agreement comes after other American allies, like Japan, clinched their own deals, partly to moderate President Trump’s tariff threats.