Trump Slashes Korean Tariffs to 15% in Landmark Deal Securing $350 Billion Investment and Nuclear Submarine Approval

Listeners, welcome to South Korea Tariff News and Tracker. The latest headlines and insider details on U.S. tariffs and South Korea have been nothing short of dramatic. As of November 2025, former President Donald Trump has once again made global news by imposing a 25 percent tariff on all exports from South Korea to the United States. The announcement came in a letter to South Korea’s President, stating that the 25 percent rate is still much less than Trump believes is needed to fix what he called the trade deficit disparity between the two nations. However, he did leave the door open, suggesting that there would be no U.S. tariff at all if Korean companies build or manufacture their products inside the United States. Trump also warned that any effort by Korea to retaliate with its own tariffs would simply be met with an increase equal to the new Korean rates. But that wasn’t the end of the negotiations. In the leadup to and during the APEC Summit in South Korea, Trump and newly elected President Lee Jae-Myung reached a significant agreement. According to The Watchdog Online, Trump agreed to lower U.S. tariffs on Korean exports from 25 percent to 15 percent in exchange for South Korea pledging $350 billion worth of investment in the United States. Among the high-profile projects now on the table is the approval for South Korea to pursue nuclear-powered submarines, something that had been off the table for decades. Trump touted this deal as a boost for both economies and a nod to the “strongest ever” U.S.-Korea military alliance. However, there’s friction behind the scenes about just where these new nuclear-powered submarines and their technology will be built. The U.S. Commerce Department is reportedly pushing for Korean nuclear subs to be constructed at the Philly Shipyard in the United States, which is owned by Korean conglomerate Hanwha Ocean. Reports from the MK Economic Daily suggest that the final trade fact sheet has been delayed as both governments negotiate whether construction will actually take place on U.S. soil—further intertwining security and manufacturing interests. Meanwhile, South Korea’s government and ruling party officials are busy discussing measures to stabilize the economy and manage the follow-up to these tariff deals. The Korea JoongAng Daily notes that, while there is cautious optimism due to better trade terms, uncertainty still looms over export-driven sectors like automotive and shipbuilding, both of which are heavily impacted by these tariffs and evolving trade policy. On the political front, these headline-grabbing moves are also fueling talk that the Trump administration may send $2,000 checks to American citizens from tariff revenue, though details remain unconfirmed. The larger narrative is clear: economic, military, and industrial policy are colliding at a pivotal moment for U.S.-South Korea relations. Listeners, thank you for tuning in. Don’t forget to subscribe for the latest on tariffs, trade, and Sout This content was created in partnership and with the help of Artificial Intelligence AI.