Quick Takeaways
- Trump’s trade and security deal with South Korea stalls over submarine details.
- Seoul wants approval to build a nuclear-powered submarine domestically.
- A $350 billion investment package remains unsigned amid U.S. concerns.
Trump’s Deal With South Korea Stalls Over Submarine Dispute
Two weeks after. Functional sound out the holdup nerve centre on South Korea’s request for U. S. favourable reception to build a nuclear-powered submarine.
The pigboat effect has become a sticking point, overshadowing progress on trade and investment cooperation.
Nuclear Submarine at the Center of the Delay
During last month’s Asia-Pacific forum, President Lee raised the submarine issue directly with Trump. Seoul seeks Washington’s blessing to construct a nuclear-powered vessel locally, while Trump has stated it would be built in a U.S. shipyard.
“Each U.S. department needs time to adjust its opinions,” South Korean Defence Minister Ahn said on Sunday. He noted that final approval hinges on coordination between multiple American agencies.
A senior South Korean official said Washington had approved Seoul’s use of nuclear fuel, but the joint factsheet outlining the deal remains under review.
Economic Impact and Market Reaction
The uncertainty over the agreement has been considered on South Korea’s markets. The win weakened 0. 7% on Tuesday, reaching a seven-month first gear at 1,467. 5 per dollar.
Hyundai Motor, one of South Korea’s largest exporters, is reportedly losing 300 billion won ($211 million) each month due to tariff-related export delays. The stalled deal is also dismaying investor opinion and switch flows.
Trade Deal and Investment Pact Still Pending
While both sides have reached a draft agreement on tariffs, the accompanying investment memorandum worth $350 billion remains unsigned. The document is ready but awaits official announcement and signatures from both governments.
Industry Minister Kim Jung-kwan told parliament that talks were in the “final stages” but declined to provide a timeline for completion.
“We are waiting for the joint factsheet to be officially announced,” a trade ministry official said. “Only then can we move forward with parliamentary procedures.”
Sensitive Technology and Political Optics
Analysts say the postponement highlights U. S. faltering to share tender poor boy technology, even with close allies. Trump’s push to build the submarine sandwich in the U. S. could contemplate a strategy to boost domestic shipyards and jobs.
Until both positions answer the submarine return, the liberal economic package project is critical to strengthen. U.S.-South Korea railroad tie remains in limbo.