The United States and South Korea have moved closer to finalising a trade and investment deal worth $350 billion, following talks marked by lavish ceremonies and symbolic gestures. During the meeting, South Korean President Lee Jae Myung presented US President Donald Trump with a gold medal and a replica royal crown — gestures of goodwill amid complex negotiations over tariffs, investments, and economic cooperation.
Progress but no final deal yet
While both sides confirmed that progress had been made, the agreement has not yet been signed. Trump said discussions were “pretty much finalised,” though specific terms are still under review. The proposed framework includes phased investments in the US economy, cooperation in shipbuilding, and a reduction in tariffs on South Korean automobile exports.
Kim Yong-beom, President Lee’s chief of staff for policy, said both countries agreed to maintain reciprocal tariffs at 15 percent and extend this rate to automobiles and auto parts. The previous 25 percent tariff had placed South Korean manufacturers like Hyundai and Kia at a disadvantage compared to Japanese and European rivals.
Diplomatic warmth and grand gestures
Trump’s visit, part of his multi-nation Asia tour, coincided with the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. South Korea rolled out a red-carpet welcome that included a special lunch featuring US beef, a gold-adorned dessert, and a live performance of Trump’s campaign anthem “YMCA.”
President Lee showered Trump with praise, telling him, “You are indeed making America great again.” Trump, visibly impressed, described the ceremonial reception as “so perfect, so flawlessly done.”
Economic talks and trade challenges
Despite the fanfare, substantial economic issues remain unresolved. The US has been pressing Seoul to commit $350 billion in direct investment, a demand that South Korean officials say could destabilise their domestic economy. Instead, they prefer to offer loans, guarantees, and possible currency swap lines to manage the outflow of capital.
Oh Hyunjoo, South Korea’s deputy national security director, said earlier in the week that negotiations were “proceeding a little bit more slowly than expected,” noting that the two sides had yet to agree on the structure of investments and profit distribution.
Trump, however, maintained optimism after his meeting with Lee. “We made our deal pretty much finalised,” he told reporters, without providing further details.
South Korea’s cautious approach
President Lee emphasised the need for balance and cooperation, warning against rising protectionism. “At a time when nationalism is on the rise and nations focus on their immediate survival, words like ‘cooperation’ and ‘inclusive growth’ may sound hollow,” he said. “Yet it is in times of crisis like this that APEC’s role as a platform for solidarity shines brighter.”
The South Korean leader’s approach contrasted with Trump’s earlier confrontational trade tactics. During a business forum, Trump struck an unusually conciliatory tone, saying, “The best deals are deals that work for everybody.”
Immigration tension and diplomatic strain
Beneath the ceremonial warmth, tensions persist between the two allies. In September, a US immigration raid on a Hyundai plant in Georgia led to the detention of more than 300 South Korean workers, causing outrage in Seoul. Lee had warned that such incidents could deter future investments unless the visa system was improved.
Responding to questions about the raid, Trump said, “I was opposed to getting them out,” adding that a reformed visa system would allow companies to bring in more skilled workers.
Looking ahead: Meeting with Xi Jinping
Trump is also expected to meet Chinese President Xi Jinping in South Korea on Thursday to discuss trade and tariffs, particularly related to raw materials used in producing fentanyl. Trump hinted at lowering certain tariffs on Chinese imports as part of wider efforts to ease tensions between Washington and Beijing.
With Trump eager to secure tangible trade victories before returning home, and South Korea balancing domestic stability with global cooperation, both sides appear committed to transforming symbolic diplomacy into concrete economic action.