Trump's Trade Talks in South Korea Face Challenges

Thu Oct 30 2025 17:04:51 GMT+0200 (Eastern European Standard Time)

Following a successful visit to Japan, Trump meets South Korea's President as trade negotiations stall over investment terms.

President Trump arrives in Gyeongju for a meeting with South Korean President Lee Jae Myung, but talks over a proposed $350 billion investment into the U.S. are stalling. South Korean officials express concerns that such a cash injection might destabilize their economy. The outcome remains uncertain as tariffs on automobiles continue to loom over future investments.

GYEONGJU, South Korea (AP) — After a successful trip to Japan where he secured $490 billion in investment commitments, President Donald Trump is set to meet with South Korean President Lee Jae Myung on Wednesday. Discussions are expected to focus on trade but face significant hurdles.

Officials from both nations highlight disagreements over Trump's proposal for a $350 billion investment from South Korea into the U.S. South Korean officials fear a direct cash injection might destabilize their economy, preferring loans and guarantees instead.

The meeting coincides with the annual Asia-Pacific Economic Cooperation summit, and the uncertainty surrounding the trade deal could overshadow discussions. Oh Hyunjoo, a deputy national security director, indicated that negotiations are proceeding slower than anticipated, with key issues around investment structure and profit distribution still unresolved.

Trump's experience in Japan starkly contrasts the situation in South Korea, where auto imports face a 25% tariff, putting manufacturers like Hyundai and Kia at a disadvantage compared to their Japanese counterparts with a 15% tariff.

President Lee, who took office in June, faces pressure to improve visa systems for South Korean workers in the U.S. after a controversial immigration raid on a Hyundai plant. Lee mentioned that without improvements, companies might think twice about future investments in the U.S.

While Trump plans to engage with Chinese leader Xi Jinping shortly, he has also hinted at possible discussions with North Korean leader Kim Jong Un, expressing his openness to a meeting if he responds.