Overview

• President Trump announced 25 percent tariffs on South Korean imports effective August 1 if no new defense cost deal is reached.
• During a July 8 Cabinet meeting, he said South Korea pays “very little” for its military support and overstated US troop levels to demand higher contributions.
• Under the 12th Special Measures Agreement signed late last year, Seoul is set to pay 1.52 trillion won next year and has committed to fully implementing the accord.
• National Security Adviser Wi Sung-lac proposed bundling trade, investment, procurement and security into a single negotiation package and suggested an early summit between Presidents Lee Jae Myung and Trump.
• Urgent talks are underway to forge a broader trade-security framework before the August 1 deadline, reflecting Washington’s wider push for allies to boost defense spending.