Trump, South Korea Trade Talks Advance with $350B Deal/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. and South Korea moved forward on trade negotiations involving $350 billion in potential investments during President Trump’s visit to Gyeongju. While no deal is finalized, both leaders expressed optimism amid ceremonial pageantry and political tension. Trump received South Korea’s top honor and a royal crown replica during the visit.
U.S.-Korea Trade Talks Quick Looks
- U.S. and South Korea discuss $350 billion investment in American economy.
- President Trump receives South Korea’s highest honor and royal crown replica.
- South Korea proposes loans, not direct cash, for investment package.
- Negotiations focus on tariffs, trade structure, and profit distribution.
- South Korean automakers still face a 25% U.S. tariff.
- Lee urges global economic cooperation amid growing protectionism.
- Trump praises ceremonial welcome, calls talks “pretty much finalized.”
- South Korea cautious due to potential domestic economic impact.
- Trump to meet with China’s Xi Jinping during visit.
- North Korea fires cruise missiles as Trump visits Seoul.
Deep Look: Trump and South Korea Celebrate Progress on Trade Amid Royal Pageantry and Political Tensions
GYEONGJU, South Korea — October 29, 2025 — U.S. President Donald Trump received South Korea’s highest civilian honor and a replica royal crown on Wednesday during a diplomatic visit marked by both grandeur and serious negotiations. At the center of the trip were trade talks involving a proposed $350 billion investment in the American economy, a deal that remains under negotiation but has reportedly made significant progress.
The visit took place in the historic city of Gyeongju, where South Korean President Lee Jae Myung offered Trump symbolic gifts — including the Grand Order of Mugunghwa and a crown modeled after the ancient Silla Kingdom — as part of a campaign to strengthen bilateral ties and secure favorable terms in the ongoing talks.
President Lee praised Trump’s leadership, telling him he was “indeed making America great again,” while U.S. officials said they were encouraged by the progress made during the final stop of Trump’s Asia trip.
Trade Framework Still in Development
Though no formal agreement has been signed, Trump described the deal as “pretty much finalized.” According to Kim Yong-beom, President Lee’s chief policy advisor, the agreement is expected to include phased investments, enhanced shipbuilding cooperation, and a potential reduction in the 25% U.S. tariff on South Korean automobiles.
However, differences remain. While Trump seeks a direct investment of $350 billion, South Korean officials prefer offering structured loans and guarantees to mitigate potential disruptions to their domestic economy. They are also requesting a currency swap line to manage capital flows during the transaction.
Oh Hyunjoo, deputy national security director for South Korea, acknowledged the talks are progressing “a little bit more slowly” than anticipated. “We haven’t yet been able to reach an agreement on the structure of investments, their formats, and how the profits will be distributed,” she said earlier this week.
In contrast, Japan has already committed to a $550 billion investment package, with $490 billion in specific commitments announced by U.S. Commerce Secretary Howard Lutnick during Trump’s Tokyo stop.
Tariffs and Economic Tensions
South Korean automakers like Hyundai and Kia are currently at a disadvantage compared to their European and Japanese competitors, who face only a 15% tariff. The Korean government is pushing for relief on this front, hoping to level the playing field.
President Lee, speaking at a business forum before Trump’s arrival, warned against rising protectionism and trade barriers. “At a time when protectionism and nationalism are on the rise… APEC’s role as a platform for solidarity shines brighter,” he said.
Trump, known for his hardline trade stance, softened his rhetoric slightly during the forum. “The best deals are deals that work for everybody,” he said, in a notable departure from his usual zero-sum framing of trade.
Ceremonial Splendor Meets Political Complexity
The South Korean government rolled out an elaborate welcome for Trump, including a lunch menu featuring U.S. beef, gold-decorated desserts, and a flag procession on a red carpet. A live band played Trump’s campaign anthem “Y.M.C.A.” as Air Force One touched down.
Trump appeared visibly impressed. “That was some spectacle, and some beautiful scene,” he said during his meeting with President Lee. “It was so perfect, so flawlessly done.”
The Grand Order of Mugunghwa, which Trump is the first U.S. president to receive, and the replica crown from the Silla Kingdom, served as symbolic gestures aimed at reinforcing diplomatic goodwill amid difficult negotiations.
Lee and Trump have cultivated a warm relationship since their initial White House meeting in August, where Lee joked about building a Trump Tower in North Korea and admired the Oval Office renovations.
Immigration Raid, Business Impact, and Diplomatic Strain
Despite the ceremonial gestures, tensions remain between the two countries. In September, more than 300 South Korean workers were detained during a U.S. immigration raid on a Hyundai plant in Georgia. The incident sparked backlash in Seoul and raised concerns about future Korean investments in the U.S.
Lee warned that unless the U.S. visa system improves, Korean companies may hesitate to establish operations in America. “If that’s not possible, then establishing a local factory… will either come with severe disadvantages or become very difficult,” he said.
Trump responded by distancing himself from the raid, saying, “I was opposed to getting them out,” and expressed support for visa reforms to help companies bring in skilled labor.
China Talks and North Korean Provocations
While in South Korea, Trump is scheduled to meet with Chinese President Xi Jinping on Thursday. Trade and fentanyl-related issues are expected to top the agenda, with both sides signaling a willingness to ease tensions.
Trump told reporters aboard Air Force One that some China tariffs could be reduced, specifically those tied to the fentanyl supply chain. “China is going to be working with me,” he said.
Meanwhile, North Korea added further tension to the visit by launching sea-to-surface cruise missiles into western waters. The move highlights the ongoing challenge of engaging Pyongyang, which has rejected U.S. overtures without the lifting of sanctions and denuclearization demands.
Trump appeared unfazed by the launch. “He’s been launching missiles for decades, right?” he said, referring to North Korean leader Kim Jong Un.
Although Trump previously hinted at meeting Kim during this trip, he confirmed that the schedule would not allow it.
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