Despite the announcement of a U.S.-South Korea strategic investment project, President Donald Trump continues to apply pressure for investment. He has warned that companies not building factories in the U.S. could face tariffs of up to 300%, while also suggesting South Korea's participation in the still-under-review Alaska liquefied natural gas (LNG) project is a foregone conclusion.
According to reports on October 5, ahead of next month's midterm elections, Trump is highlighting tariffs and investment attraction as key achievements. During a campaign rally in Ohio on October 3, he stated, "They have about a year and a half to build a factory here. If they don’t, we will impose tariffs of 150%, 200%, 250%, or even 300%."
Trump emphasized that foreign companies are relocating production facilities to the U.S. to avoid tariffs. With the midterm elections approaching, he appears determined to showcase domestic investment and job creation as central economic successes, using tariffs as a tool for attracting investment.
Pressure on South Korea for investment continues. The U.S. and South Korea confirmed on October 1 that the Texas EnCina gas combined cycle power plant would be the first major investment project in the U.S., and they reached a broad agreement on nuclear power construction projects in the U.S. The decision on the Alaska LNG project will be made based on commercial viability and compliance with domestic laws.
On the U.S. side, it was announced that over $50 billion in South Korean investment is expected for the Alaska LNG project. However, after concerns were raised that South Korea had not confirmed its investment, officials stated, "This was not a hasty announcement." They further increased pressure by stating that if South Korea does not agree to invest, "we will double the amount." While it remains unclear what Trump intends to double, it likely refers to investment amounts or tariffs.
Trump also claimed on his social media that the U.S.-South Korea agreement includes an $8.4 billion enhanced oil recovery (EOR) project. EOR is a technique that involves injecting carbon dioxide or gas into existing oil fields to increase internal pressure and boost oil production.
However, the fact sheet detailing the agreements between the two countries does not include this project. An official from the Ministry of Trade, Industry and Energy stated, "This matter is currently being verified at the level of trade authorities," adding that the agreements related to strategic investment are reflected in the fact sheet.
* This article has been translated by AI.
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