# US-South Korea trade and investment tensions

> Live situation record from CLSTR: https://clstr.news/situations/us-south-korea-trade-and-investment-tensions
> Updated: 2026-10-06T21:56:00.000Z. Sources: 8. Developments: 2.

Donald Trump has proposed aggressive trade measures targeting foreign companies that do not establish domestic manufacturing in the United States. During a campaign rally in Ohio, he threatened tariffs of up to 300% on firms that fail to build U.S. factories within an 18-month window. He specifically cited South Korea, suggesting that failure to invest in the Alaska liquefied natural gas (LNG) project could result in increased charges.

Following these threats, Trump claimed during a speech in Maryland that South Korea has agreed to $150 billion in investments to secure lower tariffs. He stated, “They want to lower the tariffs imposed on them. I told them, ‘If you want to do that, you have to pay a price.’”

These investments are reportedly part of a broader $350 billion agreement between the two nations. While $150 billion is earmarked for the shipbuilding industry—including a multi-billion dollar investment by Hanwha to revitalize the Philly Shipyard—the remaining $200 billion is intended for sectors such as Texas gas-fired power plants and nuclear reactor construction. Although Trump presented the Alaska LNG project investment as a certainty, South Korean officials have indicated the project is still under review and not yet finalized.

## Timeline

### 2026-10-06: Donald Trump claims South Korea is paying for lower tariffs via $150 billion investment

President Donald Trump stated that South Korea is investing $150 billion in the U.S. shipbuilding industry as a “price” to secure lower tariffs, highlighting Hanwha’s investment in Philadelphia.

6 sources. https://clstr.news/cluster/donald-trump-claims-south-korea-is-paying-for-lower-tariffs-via-150-billion-investment

### 2026-10-04: Trump threatens 300% tariffs on foreign firms not building U.S. factories

Donald Trump threatened tariffs of up to 300% on foreign companies that fail to build factories in the U.S., specifically mentioning potential pressure on South Korea regarding Alaska LNG investments.

3 sources. https://clstr.news/cluster/trump-threatens-300-tariffs-on-foreign-firms-not-building-us-factories

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Cite as: US-South Korea trade and investment tensions. CLSTR, https://clstr.news/situations/us-south-korea-trade-and-investment-tensions