Is South Korea’s Trade Deal Out of Reach? Trump’s $350B Investment Quest Explained

GYEONGJU, South Korea (AP) — President Donald Trump recently wrapped up a trip to Japan, where he secured $490 billion in investment promises. However, his meeting with South Korea’s President Lee Jae Myung seems less fruitful, with significant challenges remaining in trade negotiations.

The main hurdle? South Korea is hesitant to commit $350 billion in investments in the U.S., fearing it could destabilize its own economy. Instead, they prefer to offer loans and guarantees. To ease currency flow, they also seek a swap line with the U.S. This disconnect casts a shadow over their meeting in this historic city, which is hosting the Asia-Pacific Economic Cooperation summit.

During a business forum, Trump emphasized the strong bond between the two nations, claiming they were “very close” to a deal. Yet, his tone was more conciliatory than usual, acknowledging that “the best deals are deals that work for everybody.”

Lee echoed this sentiment, cautioning against rising trade barriers. He highlighted that cooperation and inclusive growth are more critical now than ever, especially amid global challenges. Lee’s call for solidarity reflects not just current issues but also a historical pattern; cooperation through platforms like APEC has often been essential in times of crisis.

Negotiations with South Korea have been slower than expected. Oh Hyunjoo, a deputy national security director, noted that issues like investment structure and profit-sharing remain unresolved. This stands in stark contrast to Trump’s more successful talks in Japan, where the government swiftly acted on previous commitments.

Interestingly, while Trump was showered with honors in South Korea, including a gold medal and a replica royal crown from the ancient Silla Kingdom, tensions have simmered due to an immigration raid on a Hyundai plant in Georgia. More than 300 South Koreans were detained, leading to concerns about future investments. Lee warned that an unclear visa system could deter companies from investing in the U.S.

In a more recent development, the South Korean Foreign Ministry reported a possible visa waiver program for skilled workers, indicating a willingness to solve these immigration issues. Trump expressed support for improving the visa system, a move that could ease tensions.

As Trump’s visit unfolded, another significant meeting loomed with Chinese leader Xi Jinping. Both sides seemed eager to reduce trade tensions, with Trump mentioning a potential easing of tariffs linked to fentanyl trade.

While these negotiations unfold, North Korea’s military actions threaten to overshadow diplomatic efforts. The country recently fired sea-to-surface cruise missiles, maintaining its assertive military posture. Trump responded dismissively, recalling that North Korea has been launching missiles for decades.

In sum, while Trump’s trip started with enthusiasm in Japan, the complexities in South Korea highlight the delicate balance of international trade, politics, and diplomacy. Both leaders must navigate a path forward, balancing their nations’ interests with the ongoing challenges in global trade dynamics.



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