Trump’s Korea Trade Deal: What You Need to Know
WSJ News·2025-07-31 11:17

Trade Agreement & Investment - South Korea needed a trade deal with the US due to competition in industries like semiconductors, autos, steel, and aluminum, aligning with the arrangements secured by the EU and Japan [1] - South Korea has pledged approximately 350 billion USD in investment, with about 200 billion USD earmarked for semiconductors, batteries, nuclear energy, and biopharmaceuticals [2] - 150 billion USD of South Korea's investment is allocated to shipbuilding, a top priority for both the US and South Korea, aiming to narrow the gap with China [3] Geopolitical & Strategic Implications - The US maintains roughly 28,500 troops in South Korea, hosting its largest overseas military base, raising questions about the future role and size of the US presence [4] - South Korea, under President Lee, aims for a broader foreign policy, seeking improved relations with China and Russia, differing from the approach of his predecessor [5] - The US views China as the primary threat in the Indo-Pacific region, and South Korea's potential role in this competition remains uncertain [6] US-South Korea Relations - Newly elected South Korean President EJN is scheduled to visit the White House, with the trade deal being a key topic alongside lingering tensions [4] - South Korean officials used the slogan "Make American ship building great again" during negotiations with the US [3]