GYEONGJU, South Korea — President Donald Trump wrapped up a closely watched visit to South Korea on Wednesday with new momentum behind a long-negotiated trade deal and fresh geopolitical signals that could reverberate across the Indo-Pacific.
South Korean officials confirmed that both countries finalized critical details of a revised trade framework, lowering automobile tariffs to 15% and easing semiconductor-related duties that Seoul has long argued placed its exporters at a disadvantage. The terms bring South Korea closer in line with industrial competitors such as Japan and Taiwan.
Under the agreement, South Korea will channel $350 billion into the U.S. economy, including $200 billion in phased cash investments and $150 billion in shipbuilding cooperation driven by Korean companies. Seoul pushed successfully for a cap of $20 billion per year to minimize volatility in its foreign exchange markets. Trump hailed the talks as “tremendous,” telling business leaders the deal was “pretty much finalized” after months of friction over tariffs.
China Meeting Looms
Global markets are watching Trump’s next stop: a highly anticipated meeting with Chinese President Xi Jinping in Busan on Thursday. Both are expected to explore contours of a broader trade arrangement amid renewed tensions and economic uncertainty.
Canada Relations Cool
The trip offered little sign of thaw in U.S.–Canada relations. During a photo op, Trump avoided direct interaction with Canadian Prime Minister Mark Carney, days after threatening to raise tariffs by 10% over what he called a “fake’’ political advertisement. The frosty atmosphere continued into a formal dinner, where the two leaders exchanged only brief acknowledgments.
Regional Security Overtones
South Korean President Lee Jae Myung reiterated Seoul’s push for U.S. approval to acquire fuel for nuclear-powered submarines, arguing they are necessary to track Chinese and North Korean undersea activity. Washington has historically resisted such requests, citing proliferation risks. Lee also pledged to increase defense spending, saying South Korea should share more of the region’s security burden.
Lavish Optics and Political Theater
In a nod to Trump’s well-known aesthetic tastes, hosts presented him with a replica of an ancient golden Silla crown and served gold-adorned dishes at a working lunch. Trump received the Grand Order of Mugunghwa, South Korea’s highest honor for allied heads of state—a rare gesture underscoring both countries’ strategic ties.
Outside the summit, small but vocal protests targeted Trump’s tariffs, which critics argue could destabilize regional economies and strain supply chains.
Tech Investments Accelerate
On the sidelines, Amazon Web Services announced more than $5 billion in new cloud and AI infrastructure investment in the Incheon and Gyeonggi regions, expanding its earlier $4 billion commitment. Seoul aims to position itself among the world’s top three AI powers.
No Meeting With North Korea
Trump said he would not meet North Korean leader Kim Jong Un on this trip, though he expressed interest in returning to the region “very soon” to continue diplomatic overtures. President Lee praised Trump’s willingness to engage Pyongyang, calling him a “peacemaker’’ on the peninsula.
Shutdown Politics Back Home
The visit unfolded against the backdrop of a grinding government shutdown, now at Day 29, with Senate Democrats again blocking Republican stopgap funding legislation. Financial markets continue to track the stalemate closely.
Broader Message
Speaking to global CEOs, Trump framed his trade agenda as a decisive break from decades of imbalance. “This week, we proved once and for all that the critics were wrong,” he said, touting domestic investment, manufacturing gains and reduced federal spending. He predicted Thursday’s session with Xi could run “three or four hours”—a sign of the stakes involved.
The Regional Mood
The president had just come from Japan, where he was welcomed with steep diplomatic warmth and a new rare-earth deal. But in South Korea, the tone was more cautious, reflecting anxiety over tariffs and supply-chain disruption.