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1h ago

Talks on U.S. Tariff Deal Stall as South Korea Rejects $350 Billion Upfront Demand

Seoul cites financial stability risks, proposing loans, guarantees, equity in place of an upfront cash transfer.

U.S. President Donald Trump and South Korean President Lee Jae Myung meet in the Oval Office at the White House, in Washington, D.C., U.S., August 25, 2025. REUTERS/Brian Snyder/File Photo
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Overview

  • National Security Adviser Wi Sung-lac said South Korea cannot provide $350 billion in cash and is seeking alternative structures.
  • A July leaders' handshake linked a cut in U.S. tariffs to 15% from 25% to a $350 billion investment in U.S. projects delivered through financing rather than cash.
  • President Donald Trump has characterized the sum as "upfront," sharpening the dispute over how the package should be structured.
  • South Korean officials say negotiations are deadlocked, pointing to U.S. efforts to exert control over how the funds would be deployed.
  • Seoul is aiming for possible resolution at next month's APEC summit it will host, with officials flagging the need for currency-swap safeguards given $410 billion in reserves.