U.S. President Donald Trump has continued to link South Korea’s large-scale investment in the United States to tariff reductions, seeking to translate Korea-U.S. economic cooperation into concrete investment outcomes. In particular, he highlighted the $150 billion, or approximately 201 trillion won, that South Korea has committed to investing in the U.S. shipbuilding industry as a key investment tied to tariff reductions, expressing optimism about rebuilding America’s shipbuilding sector and revitalizing its manufacturing base.
President Trump made the remarks on Oct. 6 (local time) at an event hosted by defense company Anduril Industries to mark the construction of a new shipyard at Sparrows Point in Baltimore County, Maryland. In his speech, Trump said South Korea had recently committed $150 billion to the United States, all of which would go toward shipbuilding, and that Seoul had sought lower tariffs but would have to pay a price for them.
Trump also cited specific examples of Korean corporate investment, underscoring his expectations for the revival of America’s shipbuilding industry. He specifically highlighted Hanwha Group’s investment of billions of dollars to revitalize the historic Philadelphia shipyard, saying Korean companies’ investments are helping modernize America’s aging shipbuilding infrastructure while expanding jobs and strengthening the industrial base.
The remarks are understood to have been made with MASGA, the shipbuilding component of a broader $350 billion U.S. investment package agreed upon as part of the Korea-U.S. trade agreement, in mind. The comments suggest that Trump was once again emphasizing that South Korea’s pledged large-scale investments must translate into actual projects for the country to receive relatively lower tariff rates under the country-specific tariff system.
Discussions are also continuing over specific projects within the remaining $200 billion investment plan outside the shipbuilding sector. The two countries are currently pursuing the construction of a combined-cycle gas power plant in Encinal, Texas, as the first project, while negotiations continue on the construction of eight large nuclear reactors and the Alaska liquefied natural gas (LNG) project.
In particular, even as the South Korean government continues to delay its final investment decision on the Alaska LNG project, Trump has repeatedly expressed his expectation that the project will move forward. On Oct. 2, Trump said of the Alaska LNG project, “If we don’t make a deal soon, I’ll double the bill,” urging a swift agreement. Meanwhile, the South Korean government has maintained that no investment has yet been finalized, creating a visible gap in the pace at which the two countries are pushing the project forward.
Trump’s moves are seen as an effort to highlight that his signature economic policy of tariffs is delivering results by attracting large-scale foreign investment to the United States. South Korean companies’ investments in the shipbuilding and energy sectors are also expected to expand America’s manufacturing base and strengthen its industrial competitiveness while giving concrete shape to Korea-U.S. economic cooperation.
Notably, Alaska, where Trump has been emphasizing investment, is considered a key battleground state in the upcoming midterm elections. At the Sparrows Point event, Trump also highlighted the expansion of America’s industrial base and its economic benefits. He described the new shipyard as the largest shipyard construction project in the United States since World War II and concluded his remarks by stressing that American taxpayers would hold a 40% stake in the new shipyard.
The remarks once again demonstrate that South Korea’s investment commitments in the United States have become a central pillar of the Korea-U.S. trade agreement. As the United States moves forward with specific investment projects in shipbuilding, energy and nuclear power, the decisions the South Korean government makes on projects it has yet to finalize are expected to determine the pace and effectiveness of future Korea-U.S. economic cooperation.
