Trump says he told South Korea it must pay a price for lower tariffs
Version 2: New details have been added on the Korean government's position — its confirmed $22.3 billion Texas gas plant as the first US investment project and its deferral of the nuclear and Alaska LNG items on commercial-rationality grounds — along with Trump's Sept 30 unilateral statement, the White House fact sheet's 15% tariff rate and differing descriptions of the Oct 6 event.
In short
US President Donald Trump said on Oct 6 that he told South Korea it must pay a price to have tariffs lowered, and that South Korea recently provided $150 billion, all of it going to shipbuilding. Korean outlets link the remarks to MASGA, the shipbuilding project that accounts for $150 billion of Korea's $350 billion US investment pledge, and note Trump has repeatedly treated pending items such as the Alaska LNG project as settled. Several reports read the remarks as promotion of his tariff policy ahead of the US midterm elections.
Read the full story 2 min read
US President Donald Trump said on Oct 6 that he told South Korea it must pay a price to have tariffs lowered, and said South Korea recently provided $150 billion to the United States, all of it going to shipbuilding. Speaking at the Sparrows Point defense shipyard in Baltimore, Maryland, Trump said, according to Yonhap, Chosun Ilbo, Asia Economy, Seoul Economic Daily, Kyunghyang Shinmun and CBS NoCut News: “They want to lower the tariffs imposed on them. I said that to do so they must pay the price.” Yonhap, reporting from Washington, said Trump described the money as Korea's way of lowering the tariffs applied to it. [ 1 , 2 , 3 , 4 , 5 , 7 , 8 , 9 , 10 ]
Korean outlets link the remarks to MASGA, the Korea-US shipbuilding cooperation project that accounts for $150 billion of the $350 billion Korea has committed to invest in the United States. Chosun Ilbo said Seoul pledged the $350 billion as the counterpart to tariff cuts last year, and Seoul Economic Daily dated the $150 billion MASGA agreement to last November, with the remaining $200 billion to go to strategic industries. Dong-A Ilbo cited a White House joint fact sheet published last year stating that Korea invests $150 billion in US shipbuilding and that the US applies a 15% tariff in principle to Korean products. [ 2 , 3 , 4 , 7 , 8 , 9 , 10 ]
Trump also said Hanwha, a Korean company, is investing billions of dollars to revive the Philadelphia Shipyard, which he described as a very large and old shipyard. [ 2 , 4 , 7 , 9 , 10 ]
On the remaining $200 billion, the two sides announced a gas-fired combined-cycle power plant in Ensenal, Texas, as the first project, while the construction of eight large nuclear reactors and the Alaska LNG project are to go through further consultations. CBS NoCut News said the Korean government confirmed a $22.3 billion gas-fired plant in Ensenal, Texas, as the first US investment project and deferred the nuclear and Alaska LNG investments for further review, citing commercial rationality. Trump said on Oct 2, however, that Korea's investment in the $50 billion Alaska LNG project was a settled matter and that Seoul should be told the claim against it would be doubled if no deal was reached soon. CBS also said Trump stated unilaterally on Sept 30 that Korea had agreed to invest in nuclear and Alaska LNG projects, which it reported embarrassed the Korean government. [ 2 , 4 , 7 , 9 , 10 ]
Korean business outlets read Trump's repeated remarks on Korean investment as an attempt to promote the effects of his tariff policy ahead of the midterm elections. Seoul Economic Daily said the midterm elections are on Nov 3 and that Alaska, where Trump pinned down the LNG investment, is one of the battleground areas. The documents describe the Oct 6 setting differently: Dong-A Ilbo called it a shipyard investment event by US defense company Anduril, while CBS NoCut News described it as a speech supporting Republican candidates. [ 7 , 8 , 10 ]
Why it matters
The remarks restate the US position that lower tariff rates for Korea depend on delivery of the $350 billion investment package, of which $150 billion is earmarked for shipbuilding. The remaining $200 billion, including eight large nuclear reactors and the Alaska LNG project, is still to be negotiated, so pressure over timing is likely to continue. Korean business outlets frame the timing as US election messaging rather than a new negotiating demand.
Key facts
- Trump said in an Oct 6 speech at the Sparrows Point defense shipyard in Baltimore, Maryland, that South Korea recently provided $150 billion and that all of it goes to shipbuilding. [ 2 , 3 , 4 , 5 , 7 , 8 , 9 , 10 ]
- Trump said South Korea wants the tariffs imposed on it lowered and that he told Seoul it must pay a price to achieve that. [ 1 , 2 , 3 , 4 , 5 , 7 , 8 , 9 , 10 ]
- Trump said Korean company Hanwha is investing billions of dollars to revive the Philadelphia Shipyard, which he described as a very large and old shipyard. [ 2 , 4 , 7 , 9 , 10 ]
- Korean outlets link the remarks to MASGA, the Korea-US shipbuilding cooperation project under which $150 billion of Korea's $350 billion US investment pledge goes to shipbuilding. [ 2 , 3 , 4 , 7 , 9 , 10 ]
- For the remaining $200 billion, the two sides announced a gas-fired combined-cycle power plant in Ensenal, Texas, as the first project, with eight large nuclear reactors and the Alaska LNG project to be discussed further. [ 2 , 4 , 7 , 9 , 10 ]
- Dong-A Ilbo cites a White House joint fact sheet published last year stating Korea invests $150 billion in US shipbuilding and the US applies a 15% tariff in principle to Korean products. [ 8 ]
- On Oct 2, Trump treated Korea's investment in the $50 billion Alaska LNG project as settled and said Seoul should be told the claim against it would be doubled if no deal was reached soon. [ 2 , 4 , 7 , 9 , 10 ]
- CBS NoCut News said Trump stated unilaterally on Sept 30 that Korea had agreed to invest in nuclear and Alaska LNG projects, and that the Korean government confirmed a $22.3 billion Texas gas plant as the first investment project while deferring the others for further review. [ 10 ]
Confirmed by several sources
- Trump said South Korea recently provided $150 billion and that the money goes entirely to shipbuilding. [ 2 , 3 , 4 , 5 , 7 , 8 , 9 , 10 ]
- Trump said he told South Korea that lowering tariffs on its goods would require paying a price. [ 1 , 2 , 3 , 4 , 5 , 7 , 8 , 9 , 10 ]
- Trump said Hanwha is investing billions of dollars to revive the Philadelphia Shipyard. [ 2 , 4 , 7 , 9 , 10 ]
- Korean outlets connect the remarks to the MASGA project, in which $150 billion of a $350 billion US investment commitment is directed to shipbuilding. [ 2 , 3 , 4 , 7 , 9 , 10 ]
- The two sides announced a gas-fired combined-cycle power plant in Ensenal, Texas, as the first project of the remaining $200 billion, with eight large nuclear reactors and the Alaska LNG project to go through further consultations. [ 2 , 4 , 7 , 9 , 10 ]
- Trump said on Oct 2 that if the Alaska LNG project deal was not agreed soon, Korea should be told the claim against it would be doubled. [ 2 , 4 , 7 , 9 , 10 ]
- Korean business outlets interpret the repeated remarks on Korean investment as intended to promote the effects of Trump's tariff policy ahead of the midterm elections, with Alaska among the battlegrounds. [ 7 , 8 , 10 ]
Still unclear
- Whether the $150 billion has actually been paid or is an investment commitment still to be executed. Trump said Korea “provided” the money, while Korean outlets describe it as investment pledged under the trade agreement and point to projects still being negotiated.
- The schedule and final scope of the remaining $200 billion of US investment, including the eight large nuclear reactors and the Alaska LNG project. Most documents say these items are subject to further consultations, while Trump has spoken about the Alaska LNG investment as already settled.
- When the $150 billion shipbuilding project was agreed. Only Seoul Economic Daily dates the agreement to last November; other documents describe the $350 billion pledge simply as made last year, without a month.
- Whether any new demand, figure or deadline accompanied the Oct 6 remarks. The documents report the remarks as repeating the link between lower tariffs and Korean investment, without any new figure or deadline from US or Korean officials.
- The character of the Oct 6 event. Dong-A Ilbo describes it as a shipyard investment event by US defense company Anduril, while CBS NoCut News describes it as a speech supporting Republican candidates ahead of the midterm elections.
What local media are saying
Timeline, local time
- CBS NoCut News says Trump stated unilaterally that Korea had agreed to invest in nuclear and Alaska LNG projects, which the report says embarrassed the Korean government. [ 10 ]
- Trump says Korea's investment in the $50 billion Alaska LNG project should be treated as settled and that Seoul should be told the claim against it will be doubled if no deal is reached soon. [ 2 , 4 , 7 , 9 , 10 ]
- Kukmin Ilbo publishes its report on Trump's remarks, Korean local time on Oct 6. [ 1 ]
- Yonhap reports from Washington on the Oct 6 speech at the Sparrows Point shipyard in Baltimore, Korean local time on Oct 7. [ 2 ]
- Seoul Economic Daily reports the speech, the MASGA details and the Nov 3 midterm elections, Korean local time on Oct 7. [ 7 ]
- CBS NoCut News reports the speech and the Korean government's confirmed and deferred investment projects, Korean local time on Oct 7. [ 10 ]