Tensions flare as US President Donald
Trump threatens steep tariffs of up to 300% on foreign firms, ramping up
pressure on South Korea over its $350 billion US investment commitments.
·
Speaking at a rally in Ohio ahead of the
November midterm elections, Trump cited South Korea, China, Japan and Canada
while promoting tariffs as a way to attract manufacturing investment.
·
His remarks come amid a dispute over
South Korea’s $350 billion
U.S. investment commitment, linked to a reduction in U.S.
tariffs on Korean goods from 25% to 15%.
·
A key point of contention is the
proposed Alaska LNG
project. Trump has described South Korean participation as part
of the investment package, while Seoul says it has only agreed to review the
project.
·
South Korea is concerned about the
project’s commercial viability. Its estimated cost is $44.5 billion to $54.5 billion,
and it would require a long pipeline, a gas treatment plant and a liquefaction
terminal.
·
President Lee Jae Myung has said
negotiations include how profits would be shared and who would bear losses if
projects are unprofitable. South Korean officials have stressed that
investments must meet commercial standards, while recognizing that withdrawal
could bring renewed tariff pressure.
·
The first confirmed project under the
investment package is a gas-fired power plant in Texas. Plans for eight large
nuclear reactors remain under review, with no final investment decision yet.
[ABS News Service/05.10.2026]
US
President Donald Trump said foreign companies that fail to build factories in
the United States could face tariffs of up to 300 percent, as South Korea faces
separate pressure from Washington over how it will carry out its $350 billion
US investment commitment.
Speaking
at a campaign rally in Vandalia, Ohio, on Saturday (03.10.2026), Trump
presented tariffs and foreign investment as part of his economic record while
campaigning for Republican candidates ahead of the Nov. 3 midterm elections.
Ohio is home to a closely watched Senate race, with the economy and cost of
living among major campaign issues.
Trump
said overseas companies would be given about a year and a half to build plants
in the US before facing tariffs ranging from 150 percent to 300 percent. He
also named South Korea alongside China, Japan and Canada while arguing that his
tariff policy had pushed foreign companies to invest in US manufacturing.
The
remarks came a day after Trump increased pressure on Seoul over the Alaska
liquefied natural gas project, which has emerged as a point of disagreement in
implementing the two countries’ trade and investment agreement.
South
Korea agreed last year to invest $350 billion in the US in return for lowering
tariffs on Korean goods from 25 percent to 15 percent. The package comprises
$150 billion for shipbuilding cooperation and $200 billion for strategic
investment.
Trump
this week presented Korean participation in Alaska LNG as part of the strategic
investment package. Seoul says otherwise, maintaining that it has agreed only
to begin reviewing the project and has not made a final decision on whether or
how much to invest.
Trump
on Friday rejected suggestions that he had moved too quickly in announcing
Korean participation. “I didn’t jump the gun. I mean, they were there and they
were represented,” Trump said. He later added that if South Korea did not want
to proceed, “that’s okay with me. I’ll just charge them more.”
Seoul’s
caution is tied in large part to the project’s economics. Lead developer Glenfarne Group estimates Alaska LNG would cost between
$44.5 billion and $54.5 billion. Reuters reported that its cost per unit of
annual production capacity would be more than twice that of many recent US Gulf
Coast LNG projects.
The
project would require an 800-mile, or 1,287-kilometer, pipeline from Alaska’s
North Slope to Nikiski, as well as a gas treatment plant and liquefaction
terminal.
President
Lee Jae Myung said in September that commercial viability had become a sticking
point in negotiations with Washington, including how returns would be shared
and how losses from unprofitable projects would be handled.
Seoul
had pushed to include the term “commercially reasonable” in the investment
agreement, Lee said.
Industry
Minister Kim Jung-kwan has also said Korea should not
put money into projects that fail to meet commercial standards, while
acknowledging that pulling out of projects under the agreement could expose
Seoul to renewed US tariff pressure.
The
first confirmed project under the strategic investment package is a gas-fired
power plant in Encinal, Texas. South Korea and the US have also discussed
building eight large nuclear reactors, but Korean officials say those projects
still require separate reviews before any final investment decisions are made.