Tariffs, Troops, and Trade: Trump and Han Eye 'Win-Win' Deal in High-Stakes Talks

Image Source: Phnom Penh Post

South Korea Acting President Han Duck-soo made the announcement for the upcoming talks with the U.S., involving talks on tariffs, defense costs, and energy collaboration. With a recent telephonic call between Han and U.S. President Donald Trump, both countries are getting ready for critical talks that can change the dynamics of their bilateral relationship in economic as well as security spheres.

Immediate Tariff Negotiations: President Trump is said to have directed his administration to start negotiating tariffs with South Korea, Japan, and India immediately. South Korea is likely to face challenges in trying to cushion the effects of retaliatory tariffs on its exports.
Defense Cost-Sharing Renewed: Trump proposed renegotiating South Korea's share of the cost of maintaining U.S. troops. Although a deal already was reached in 2024 for annual increases through 2030, Trump's insistence on a "package deal" could result in Seoul making additional financial commitments.
Energy Cooperation: The two leaders talked about the potential participation of South Korea in the Alaska LNG project. This $44 billion project plans to produce and sell liquefied natural gas chiefly to Asia in 2029, and South Korea could potentially be at its center.
Shipbuilding Cooperation: Shipbuilding has been pointed out as an area of crucial cooperation in the discussions. South Korea's competitive advantage in this area could be a bargaining chip during larger trade talks.
Trilateral Coordination: Han called for enhancing trilateral coordination with the U.S. and Japan, especially against the backdrop of North Korea's nuclear threat. The leaders reaffirmed the commitment to cooperative deterrence measures.

Video Call on LNG Project: A video call between South Korean and U.S. officials will be held within the next two days to exchange views on the economic viability and cooperation on the Alaska LNG project.

Sources: Ked Global, Yonhap News, Yonhap News, Chosun, Korea Herald, Yonhap News, Korea JoongAng Daily

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