Security issues conspicuously absent from Korea-U.S. tariff deal

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Security issues conspicuously absent from Korea-U.S. tariff deal

Published: 31 Jul. 2025, 18:36

Audio report: written by reporters, read by AI

A citizen watches a news broadcast on the Korea-U.S. tariff negotiations at the waiting room of Seoul Station in Yongsan District, central Seoul, on July 31. [YONHAP]

Security matters such as alliance modernization were left out of the Korea-U.S. tariff agreement finalized Wednesday, reflecting Washington’s strategic decision to keep trade and defense separate to maximize leverage. With the United States ultimately refusing to accept a package deal, many believe that U.S. President Donald Trump’s demands on security issues are only beginning — especially with a bilateral summit now just two weeks away.

While Korea had sought a comprehensive “package deal” tying trade to alliance matters, U.S. negotiators refused, according to sources close to the talks. “The United States initially seemed open to a package, but shifted midway,” one insider told the JoongAng Ilbo.

This separation signals that Trump may be preparing to address sensitive security topics — including U.S. Forces Korea (USFK) and defense cost-sharing — in the lead-up to the November midterm elections.

Trump’s posts on Truth Social in April hinted at “big time military protection” and “one-stop shopping,” language that initially encouraged Korea to propose comprehensive dialogue. But by late April, Trump publicly reversed course, saying “military matters are a separate subject” and excluding defense issues from a parallel tariff deal with Japan.

Experts say Trump’s move allows the United States to preserve negotiating leverage while limiting inflationary fallout.

Containers for export are piled up at a port in Incheon on July 31. [NEWS1]

“Trump is likely to spotlight issues like tariffs and defense cost-sharing in sequence leading up to the November midterm elections,” said Seo Jung-kun, professor of political science at Kyung Hee University. “He appears to have concluded the tariff deal quickly to limit inflationary impact, with plans to press Korea on alliance modernization soon after.”

Observers expect full-fledged talks to begin soon on strategic flexibility for USFK, defense spending increases and renegotiation of Korea’s contribution to USFK basing costs.

The Trump administration sees USFK not only as a deterrent to North Korea, but also as a key asset in contingency scenarios involving Taiwan and the South China Sea. It reportedly believes South Korea’s defense spending should reach 5 percent of GDP.

While the United States has yet to request revisions to the 12th Special Measures Agreement (SMA) on defense cost-sharing, signed in October last year under the Joe Biden administration, Trump previously stated that “South Korea should pay $10 billion” for hosting U.S. forces.

Director of National Policy Kim Yong-beom speaks during a press briefing on tariff negotiations at the presidential office in Yongsan, central Seoul on July 31. [YONHAP]

Trump is also likely to raise the issue of defense cost-sharing himself during the upcoming summit. He previously brought it up directly during a 2018 bilateral summit with then-President Moon Jae-in. At a press conference two days later, Trump publicly recounted the encounter: “I said to South Korea: We have 32,000 soldiers in South Korea. They're a very wealthy country, very wealthy. I said, 'Why aren't you reimbursing us for our costs?'"

"And you know what? They look at me, and they can't even answer it, because there's no answer," Trump said at the time.

The summit that Trump said would happen “within two weeks” is widely expected to fall during the second or third week of August — coinciding with Ulchi Freedom Shield (UFS), the annual Korea-U.S. joint military exercise.

Trump has long expressed disapproval of the drills on financial grounds, calling them “war games" that cost "a tremendous amount of money," during a press conference following the North Korea-U.S. summit on June 12, 2018.

U.S. President Donald Trump speaks during a meeting with then-President Moon Jae-in in the Oval Office of the White House in Washington on April 11, 2019. [AP/YONHAP]

Coincidentally, the results of a review evaluating the costs and missions of U.S. forces stationed around the world — along with the release of the 2025 National Defense Strategy (NDS), which will set long-term defense guidelines — are expected later this summer. With the Korea-U.S. summit taking place just before those announcements, observers say Washington may reveal its position on the strategic flexibility of U.S. Forces Korea.

“Trump is expected to publicly raise issues like defense cost-sharing during a bilateral summit with President Lee Jae Myung in the near future,” Seo said. “But Korea would benefit from agreeing only to general principles while deferring detailed figures to working-level talks.”

“The real game starts now,” said Lee Byong-chul, professor at the Institute for Far Eastern Studies at Kyungnam University. “Within two weeks, Lee and Korea’s negotiating team will face intense scrutiny over issues like USFK flexibility and the North Korean nuclear threat.”

A large-scale crane is seen at a Hanwha Ocean shipyard in Geoje, South Gyeongsang on July 31. [NEWS1]

Given Trump’s style, observers say he may use the yet-to-be-finalized summit date as bargaining leverage with Korea.

“Trump reportedly told U.S. Secretary of State Marco Rubio to ‘set a date next week,’” said Director of National Policy Kim Yong-beom in a briefing Thursday. “The exact schedule will be coordinated through the diplomatic channels of both countries.”

Minister of Foreign Affairs Cho Hyun is set to meet Rubio in Washington on Thursday local time, where the summit agenda and date are expected to be finalized.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HYUN-JU [[email protected]]