Then-U.S. President Donald Trump, speaking at an event in Ohio, stated that his administration was considering tariffs on South Korean products while linking ongoing trade negotiations to potential South Korean investment in U.S. energy infrastructure. The remarks were delivered amid renegotiations of the U.S.-Korea Free Trade Agreement (KORUS).
During a speech on infrastructure in Richfield, Ohio, in March 2018, President Trump cited the U.S. trade deficit with South Korea as a reason for re-evaluating the trade relationship. He mentioned specific South Korean companies, such as Samsung and LG, in his address.
“We have a very big trade deficit with them, and we have to do something,” Trump said at the event. He added that the U.S. has “great relationships” with South Korea but that the trade agreement in place at the time was “not a good deal for us.”
In his remarks, the president also referenced discussions about South Korean participation in an Alaska-based liquefied natural gas (LNG) project. He connected the country’s potential investment in the project to the broader trade discussions taking place between the two nations.
The comments came as officials from both countries were engaged in high-level talks to amend the KORUS agreement. The U.S. administration had initiated the renegotiation process, seeking to address the trade imbalance and improve market access for American goods.
At the time of the president’s speech, South Korea’s state-run Korea Gas Corporation (KOGAS) had signed a letter of intent related to the Alaska LNG project. However, South Korean officials noted that a final investment decision had not been made and was subject to a comprehensive review of the project’s economic viability.
A statement from South Korea’s Ministry of Trade, Industry and Energy, released in response to the U.S. discussions, clarified that participation in any energy project would be based on commercial considerations.
The backdrop for these discussions included the Trump administration’s recent implementation of tariffs on steel and aluminum imports from a number of countries, including South Korea. The South Korean government was simultaneously negotiating for an exemption from these metal tariffs while also working to conclude the KORUS renegotiations.
