US President Donald Trump received a lavish welcome from South Korean President Lee Jae Myung, including a gold medal and crown, as the two countries made significant progress in trade talks.
The framework for the deal includes gradual investments of $350 billion into the US economy, cooperation on shipbuilding, and a reduction in tariffs on South Korea's automobile exports. This comes after months of negotiations that have been marked by tension over Trump's demands for direct investment and his rhetoric on international trade.
Despite the progress, no agreement has been signed yet, with both sides saying that they are "pretty much finalised" but leaving details to be ironed out. The two countries agree to keep reciprocal tariffs at 15 percent, as they have been since August, and further agreed to apply this rate to automobiles and auto parts.
Trump was visibly impressed by the pomp and circumstance surrounding his visit, praising a choreographed display of colourful flags and saying it was "some spectacle" that he had never seen before. He also softened his rhetoric on trade, stating that "the best deals are deals that work for everybody."
However, some have warned of risks to South Korea's economy from the deal, particularly if direct investment is required. Lee Jae Myung has said that putting up cash could destabilise their own economy and they would rather offer loans and loan guarantees instead.
The visit comes as Trump tries to tie up trade deals along his Asia tour, eager to show that his confrontational approach of tariffs is paying dividends for Americans who are uneasy about the job market. However, South Korea has been particularly tough to crack, with disagreements on key issues such as investment structure and profit distribution.
Trump's experience in Japan was marked by a more straightforward deal, where the government promised $550 billion in investments under an earlier trade agreement. In contrast, South Korean officials have been hesitant to offer direct investment, citing concerns about destabilising their own economy.
The visit has also raised tensions over immigration, with Trump having previously opposed the removal of over 300 South Koreans from a Hyundai plant in Georgia after a US immigration raid in September. Lee Jae Myung had warned that companies would be reluctant to make future investments unless the visa system was improved.
Despite these challenges, both sides have indicated a willingness to dial down tensions and move forward with trade talks. Trump's meeting on Thursday with Chinese leader Xi Jinping is also seen as an opportunity for him to lower tariffs targeting China over the flow of ingredients used in the manufacture of the drug fentanyl.
The framework for the deal includes gradual investments of $350 billion into the US economy, cooperation on shipbuilding, and a reduction in tariffs on South Korea's automobile exports. This comes after months of negotiations that have been marked by tension over Trump's demands for direct investment and his rhetoric on international trade.
Despite the progress, no agreement has been signed yet, with both sides saying that they are "pretty much finalised" but leaving details to be ironed out. The two countries agree to keep reciprocal tariffs at 15 percent, as they have been since August, and further agreed to apply this rate to automobiles and auto parts.
Trump was visibly impressed by the pomp and circumstance surrounding his visit, praising a choreographed display of colourful flags and saying it was "some spectacle" that he had never seen before. He also softened his rhetoric on trade, stating that "the best deals are deals that work for everybody."
However, some have warned of risks to South Korea's economy from the deal, particularly if direct investment is required. Lee Jae Myung has said that putting up cash could destabilise their own economy and they would rather offer loans and loan guarantees instead.
The visit comes as Trump tries to tie up trade deals along his Asia tour, eager to show that his confrontational approach of tariffs is paying dividends for Americans who are uneasy about the job market. However, South Korea has been particularly tough to crack, with disagreements on key issues such as investment structure and profit distribution.
Trump's experience in Japan was marked by a more straightforward deal, where the government promised $550 billion in investments under an earlier trade agreement. In contrast, South Korean officials have been hesitant to offer direct investment, citing concerns about destabilising their own economy.
The visit has also raised tensions over immigration, with Trump having previously opposed the removal of over 300 South Koreans from a Hyundai plant in Georgia after a US immigration raid in September. Lee Jae Myung had warned that companies would be reluctant to make future investments unless the visa system was improved.
Despite these challenges, both sides have indicated a willingness to dial down tensions and move forward with trade talks. Trump's meeting on Thursday with Chinese leader Xi Jinping is also seen as an opportunity for him to lower tariffs targeting China over the flow of ingredients used in the manufacture of the drug fentanyl.
, I mean, he's been super tough on trade and everyone knows that's gonna hurt South Korean businesses. Like, what's up with the gold medal and crown tho? It feels like a total flex 
. And while it's good that they're making progress on some fronts, the risks to South Korea's economy from direct investment are super real 
. I don't think Trump is gonna let go of this deal easily though, he needs something to show for his efforts 
.
just heard that trump got a gold medal and crown from south korea lol what a flex 
but on a more serious note, these trade talks are super vague...no deal is real until it's signed, idk how much more of this back and forth i can take 
meanwhile, south koreans are getting all worked up about direct investment and destabilizing their economy 
and trump is still whining about tariffs...can't we just have a straightforward trade agreement for once? 
. And what's with the choreographed display of colourful flags? It's just so... cheesy 
. Can't they just have a nice tea party or something instead?
.
️. If they're not careful, it could destabilize their entire system. And what about those 300 South Koreans at the Hyundai plant in Georgia? Are we really just going to let them get deported without even trying to resolve the issue first? 
So, it looks like US President Trump just got a major welcome from South Korea 
! The whole gold medal and crown thing was pretty fancy 
. I mean, you can't blame them for wanting to make a good impression, but still, $350 billion in investments seems like a big deal 
.
. It's all about balancing the books and making sure everyone comes out on top 
.
. Companies are gonna be watching this closely and waiting for those visa rules to get sorted out 
.
. Fingers crossed everything works out smoothly from here on out! 
, it feels like we're back to those crazy 80s trade deals 
. But for real, though, South Korea's economy can't afford to take on too much debt 
.
- it feels like we've been here before, like that time when Nixon was all about keeping out those pesky immigrants from Southeast Asia... times haven't changed much, huh? 
, that gold medal and crown are sick 
. But for real tho, it's interesting how much progress they made on trade talks 
. And Trump finally toned down his rhetoric on trade 
, that's a good sign 
. But still some risks to South Korea's economy from this deal 
.
. South Korea is being super cautious about direct investment 
, it's time for deals that work for everyone 
and focus on creating jobs 
. But I guess that's what happens when you're trying to tie up all these trade deals on your Asia tour 