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Trump Casts Doubt on South Korea Ties Before High-Stakes Trade Summit

Trump questions South Korea's stability just hours before a key summit, casting uncertainty over trade, defense, and investment talks.

AgroLatam USA
AgroLatam USA

The comments, posted on Truth Social, suggest a potential shift in tone ahead of the first in-person summit between the two leaders. "WHAT IS GOING ON IN SOUTH KOREA? We can't have that and do business there," Trump wrote, describing the country as undergoing a "purge" or "revolution."

The message appeared to catch both U.S. and South Korean officials off guard. While the White House offered no immediate comment, South Korea's presidential office said it was "checking the situation," according to Yonhap News Agency.

A New Trade Pact Under Pressure
The meeting comes just weeks after the two countries signed a major trade agreement that capped tariffs on South Korean exports to the U.S. at 15%-well below the 25% Trump had previously threatened. In return, South Korea pledged a sweeping $350 billion investment package, reportedly to be "owned and controlled by the United States."

The structure and feasibility of that pledge remain unclear and are expected to be a central topic at the summit. Trump has insisted that he personally select the projects to receive funding, raising concerns among policymakers and investors.

Shipbuilding and Strategic Defense on the Agenda
Another key item is a proposed $150 billion initiative to boost U.S. shipbuilding, with South Korea offering its industrial base and capital under the slogan "Make America Shipbuilding Great Again." The initiative is framed as a win-win for both countries, revitalizing a struggling American sector while solidifying South Korea's role as a strategic partner.

Meanwhile, with over 28,000 U.S. troops stationed in South Korea, defense cooperation is another sensitive issue. Trump is expected to push for Seoul to shoulder more of the defense burden, allowing U.S. forces to shift focus toward China. South Korean officials, however, worry this could weaken deterrence against North Korea.

A Crucial Test for President Lee
For Lee Jae Myung, elected in June 2025 following a snap election, this summit represents a critical foreign policy challenge early in his presidency. While seeking to strengthen economic ties, he now faces unpredictable political messaging from the U.S. side, which could complicate public and legislative support back home.

Geopolitical Implications
Trump's statements underscore the volatility of international diplomacy under his administration. The unexpected public criticism of an allied government ahead of formal talks may not only strain bilateral trust but also impact broader regional alignments in East Asia.

As both sides prepare for potentially tense negotiations, U.S. agriculture and manufacturing sectors are watching closely-especially given the implications for input costs, supply chain reliability, and foreign capital flows into U.S. infrastructure and defense industries.

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