While South Koreans were still asleep, Trump suddenly struck.

Moreover, South Korean automobiles were the first item listed by Trump for tariffs—clearly striking at the heart of South Korea’s economy: auto exports account for 27% of South Korea’s exports to the U.S., and the U.S. market absorbs half of all South Korean auto exports. Timing-wise, Trump delivered his blow just before dawn on January 27—when it was still dark in South Korea. South Koreans waking up that morning probably turned green with shock: ‘Trump, you’re launching a midnight raid!’ I noticed that South Korea’s Blue House spokesperson, barely out of bed, hastily issued a statement—admitting they had not yet received any official notification from the U.S. government (indeed, they’d only seen Trump’s tweet). South Korea announced it would convene an emergency meeting to formulate countermeasures, and its Minister of Trade and Industry would immediately travel to the U.S. for consultations. January 27 will be a day of utter dismay for South Korea. They thought they’d already secured Trump’s favor—only to be blindsided by this sudden twist. Finally, how should we interpret this? Here are three preliminary observations: First, Trump is once again staging a tariff spectacle. For Trump, tariffs truly are the most beautiful weapon. Whoever refuses to submit to the U.S.? Tariffs—no negotiation! Just last week, Trump announced 10% tariffs on eight European countries, effective February 1—and threatened to raise them to 25% starting June 1 unless Europe agreed to let the U.S. annex Greenland. Just days ago, Trump threatened Canada with 100% tariffs, citing Canada’s alleged plans to sign a trade agreement with China. Now he’s targeting South Korea—claiming South Koreans are simply ‘dragging their feet.’ Yet the U.S.-EU trade agreement was concluded earlier—and the EU hasn’t ratified it either. So why isn’t Trump targeting the EU? In fact, he later quietly rescinded his announced tariffs on those eight EU countries. South Korea, South Korea—Trump is clearly picking the softest target! Second, Trump urgently needs a new focal point. It must be said: South Korea happened to land at an extremely unlucky moment. Domestically, the fatal shooting of a civilian by law enforcement officers in Minnesota has ignited nationwide outrage; Trump himself has been widely condemned and looks deeply embarrassed. Internationally, the Greenland affair has nearly severed ties between the U.S. and the EU. Trump mocked NATO troops in Afghanistan as ‘standing idly by, far from the front lines’—a remark that enraged Britain, France, Germany, Canada, Denmark, and other Western nations, who blasted him for speaking ‘in an outrageously insulting manner’… Trump desperately needs a fresh distraction. His greatest strength lies in constantly manufacturing new headlines—throwing the entire world into confusion—while his inner circle cheers, ‘Trump won again! America has won big!’ Attacking Iran might seem like a viable option—but war is too grave a matter; Trump must tread carefully. Thus, South Korea becomes a convenient target: a little pressure here, a quick diversion there—and can South Korea really rebel?

The U.S. has finalized new ‘reciprocal tariffs’ against various countries, with rates ranging from 10% to 41%. How should we interpret this? What impact will it have on global trade?

On July 30, Trump posted on social media announcing a trade agreement reached with South Korea. In his post, Trump claimed: ‘Under the agreement, South Korea will provide $350 billion to the United States for investments owned and controlled directly by me—as President. Additionally, South Korea will purchase $100 billion worth of LNG or other energy products from the U.S.’ Trump also asserted: ‘South Korea has also agreed to allocate a substantial sum of funds for investment purposes. This amount will be formally announced during South Korean President Lee Jae-myung’s upcoming visit to the White House for bilateral talks, scheduled within the next two weeks.’ Finally, Trump stated: ‘Both sides have also agreed that South Korea will fully open its markets to U.S. trade, accepting American products—including automobiles, trucks, and agricultural goods. We have agreed to impose a 15% tariff on South Korean goods. The U.S., in turn, will face no tariffs.’ Of course, this remains solely Trump’s unilateral account. Given Trump’s well-known tendency to exaggerate or misrepresent facts, we must wait to hear South Korea’s version. Newly inaugurated South Korean President Lee Jae-myung also issued a statement welcoming the agreement, calling it ‘a major milestone’ and expressing hope that ‘industrial cooperation between South Korea and the U.S. will further strengthen, and the ROK-U.S. alliance will become even more solid.’ Regarding the $350 billion investment pledge, President Lee explained it refers to a ‘fund’ established to advance bilateral cooperation in strategic sectors such as shipbuilding, semiconductors, batteries, and biotechnology. According to the South Korean presidential office, this fund will primarily be implemented through loans and guarantees. Lee added that $150 billion of this fund will serve as a dedicated shipbuilding fund, ‘to vigorously promote South Korean shipbuilders’ entry into the U.S. market.’ However, South Korea’s Presidential Policy Office Director Kim Yong-beom noted: ‘During negotiations, the U.S. strongly demanded opening South Korea’s agricultural and livestock markets—but given food security concerns and the sensitivity of the agricultural sector, both sides agreed not to further liberalize South Korea’s rice and beef markets.’ This stands in contrast to Trump’s claim that ‘South Korea will accept U.S. products—including automobiles, trucks, and agricultural goods.’ Clearly, the two sides’ statements diverge—but South Korea did not deny opening its markets to U.S. automobiles and trucks. Given the structure of the South Korean auto market, U.S.-made vehicles have virtually no chance of gaining traction there; thus, South Korea has little reason to impose restrictions on American cars. On the $15 billion shipbuilding cooperation commitment, Kim Yong-beom called it ‘an important step toward strengthening bilateral relations.’ The plan covers the entire shipbuilding lifecycle—from construction and maintenance to repair, overhaul, and shipbuilding equipment. He added that the remaining $200 billion of the fund will support strategic sectors—including semiconductors, nuclear power, secondary batteries, and biotechnology—through equity investments, loans, and guarantees, helping competitive South Korean firms enter the U.S. market. Kim also emphasized that the $100 billion U.S. energy import commitment is ‘controllable.’ He explained: ‘Although some adjustments may occur—for instance, shifting part of our energy imports from the Middle East to the U.S.—this remains well within our economy’s normal energy import requirements.’ In other words, the South Korean side acknowledges both the $35 billion investment plan and the $100 billion energy procurement plan. In this regard, Trump’s claims are not entirely fabricated—but he omitted key details.

Trump to Unveil $200 Billion South Korean Investment in US Energy Projects

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President Trump plans to announce $200 billion in South Korean investments targeting US energy infrastructure, including eight nuclear plants and an Alaska LNG project.

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