South Korea trade deal appears elusive as Trump seeks $350B investment

In contrast, U.S. Treasury Secretary Scott Bessent, speaking to reporters aboard Air Force One on Monday, said a deal wasn’t ready in South Korea

“Just a lot of details to work out,” he said, although he suggested they were close.

For now, South Korea is stuck with a 25% tariff on automobiles, putting automakers such as Hyundai and Kia at a disadvantage against Japanese and European competitors, which face 15%.

Lee took office in June and had a warm meeting with Trump at the White House in August, when he cranked up the flattery. But there’s been points of tension since then, notably a U.S. immigration raid on a Hyundai plant in Georgia in September. More than 300 South Koreans were detained, sparking outrage and a sense of betrayal.

Lee said companies would likely hesitate to make future investments unless the visa system was improved.

“If that’s not possible, then establishing a local factory in the United States will either come with severe disadvantages or become very difficult for our companies,” he said. “They will wonder whether they should even do it.”

South Korea’s Foreign Ministry said in early October that the U.S. had agreed to allow South Korean workers on short-term visas or a visa waiver program to help build industrial sites in America

Asked Monday about the immigration raid, Trump said, “I was opposed to getting them out,” and he said an improved visa system would make it easier for companies to bring in skilled workers.

While in South Korea, Trump is also expected to hold a closely watched meeting on Thursday with Chinese leader Xi Jinping. Washington and Beijing have clashed over trade, but both sides have indicated that they’re willing to dial down tensions.

He has also dangled the possibility of meeting with North Korean leader Kim Jong Un, expressing disappointment that Kim hadn’t yet responded to his outreach.

North Korea has so far dismissed overtures from Washington and Seoul, saying it won’t resume diplomacy with the United States unless Washington drops its demand for the North’s denuclearization. North Korea said Wednesday it fired sea-to-surface cruise missiles into its western waters, in the latest display of its growing military capabilities as Trump visits South Korea

“I got along great with Kim Jong Un. I liked him. He liked me,” Trump said. “If he wants to meet, I’ll be in South Korea.”

Trump even said he would be willing to extend his trip — South Korea is his final scheduled stop — if there was an opportunity to talk with Kim.

The two leaders met during Trump’s first term, although their conversations did not produce any agreements about North Korea’s nuclear program.

By Associated Press