On Wednesday, U.S. President Donald Trump once again claimed that South Korea would invest 350 billion USD in the U.S. as an upfront payment.
During a White House event in Washington, D.C., highlighting crime enforcement achievements, Trump stated that they’ve made a great deal with Japan, receiving 650 billion USD. They’ve balanced the trade deficit. What we should know is that both Japan and South Korea have signed trade agreements.
Trump continued that South Korea will invest 350 billion USD upfront, and Japan will invest 650 billion USD and that everyone has agreed to this.
It appears Trump misstated Japan’s investment amount, which is actually 550 billion USD. Moreover, while South Korea promised a 350 billion USD investment in the U.S. during a verbal agreement on July 30, significant differences remain between the two countries regarding the execution of funds. No formal documentation or signatures have been completed.
On September 25, Trump had previously stated that they’re getting 550 billion USD from Japan and 350 billion USD from South Korea. This is upfront.
Analysts suggest this might be an arbitrary statement intended to showcase his tariff negotiation achievements. As follow-up negotiations between the U.S. and South Korea are ongoing, Trump’s repeated mention of the upfront 350 billion USD has raised questions about its accuracy.
Trump’s remarks came in response to a question about the possibility of a prolonged trade war if he fails to reach an agreement with Chinese President Xi Jinping at their upcoming summit. He used this opportunity to emphasize the effectiveness of tariffs.
Trump has been using tariffs as a defensive measure in the trade war with China and claims to have leveraged them to mediate conflicts between India and Pakistan.
He also mentioned that tariffs have been used to reduce the European Union’s (EU) tariffs, referencing the investment commitments from South Korea and Japan.
Trump emphasized that the upcoming Supreme Court hearings on the legality of reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA), starting November 5, represent one of the most important cases in the nation’s history.
He warned that if it can’t use what other countries use against them, they have no defense. It will be a disaster for America.
Meanwhile, U.S. Treasury Secretary Scott Bessenet expressed expectations that a U.S.-South Korea trade agreement would be reached within ten days.
Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, who arrived in the U.S. that day, is scheduled to meet with Secretary Bessenet. Trade Negotiations Chief Yeo Han-koo is also set to arrive in Washington, D.C., that evening.
On Thursday, Kim Yong-beom, head of the Presidential Office’s Policy Office, and Minister of Trade, Industry and Energy Kim Jeong-kwan will join Yeo to meet with Commerce Secretary Howard Rutnik for negotiations.
During a press conference, Deputy Prime Minister Koo suggested that the U.S. seems to have a good understanding of South Korea’s foreign exchange market regarding the 350 billion USD investment, indicating that the U.S. may be willing to accommodate South Korea’s position to some extent.