Trump announces major trade deal between the US and South Korea promising significant economic and military gains
According to recent statements from former US President Donald Trump, a new large-scale trade agreement has been reached between the United States and South Korea, potentially reshaping the economic and military balance in the region.
Trump claimed that South Korea has committed to pay a staggering $350 billion in financial contributions and tariffs to the US in exchange for the reduction of high tariff barriers.
He emphasized that these funds would serve to invest in America’s economy and infrastructure.
Beyond economic concessions, the new deal involves strengthening military cooperation and partnership.
Notably, South Korea has agreed to build its first nuclear submarine at a US shipyard in Philadelphia, marking a significant step toward the country’s military independence.
Trump highlighted that this strategic partnership was made possible by strong cooperation between both nations and that the agreement opens new prospects for reinforcing trade, economic, and defense ties.
Meanwhile, South Korean officials announced they would not oppose US tariffs due to a ‘historic debt’ incurred from the new trade arrangements.
This development occurred ahead of a crucial meeting between Trump and Chinese leader Xi Jinping in South Korea, complicating future negotiations regarding trade policies and economic collaboration.
Additionally, North Korea has escalated tensions by launching new cruise missiles ahead of Trump’s visit.
It is also important to note that in response to China’s restrictions on rare earth exports, the US has already imposed high tariffs on Chinese goods, which is increasing global trade tensions but also opening opportunities for new negotiations.
US Treasury Secretary Scott Bessent stated that the parties have reached preliminary agreements on a framework deal to prevent new tariffs, expressing optimism about successful negotiations.
White House officials also indicated Trump eagerly looks forward to meeting Xi Jinping to discuss further steps in strengthening US-China relations.