By: Irfan Ghafoor
The World Ambassador
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Seoul — On the final leg of his Asia tour, U.S. President Donald Trump and South Korean President Lee Jae Myung reached a breakthrough agreement on the details of a long-discussed bilateral trade deal, officials confirmed Wednesday.
Presidential policy chief Kim Yong-beom told reporters in Gyeongju that both sides finalized the terms that had remained unresolved since July’s preliminary accord. The updated deal reduces automobile tariffs from 25% to 15%—matching Japan’s rate—and establishes new frameworks for semiconductor trade and shipbuilding cooperation.
Kim said the agreement also includes a $350 billion investment package, with $200 billion in direct cash investments and $150 billion allocated to joint shipbuilding projects, led by South Korean firms.
“The investments will be spread over several years, capped at $20 billion annually to protect South Korea’s foreign exchange stability,” Kim noted.
The U.S. and South Korea initially agreed on the broad framework of the deal earlier this year, but final details—especially those related to tariffs and payment structures—were left pending until the leaders met on the sidelines of the APEC summit this week.
Xi Jinping Meeting Next
Trump’s next stop on his Asia tour is Beijing, where he will meet Chinese President Xi Jinping to discuss the possibility of a U.S.-China trade framework that could reshape global economic policy.
29th Day of U.S. Government Shutdown
While Trump tours Asia, Washington remains gridlocked in a 29-day government shutdown. The latest Republican funding bill to reopen the government failed for the 13th time, as Democrats demand the extension of Affordable Care Act subsidies and refuse to back any proposal without presidential engagement.
Shutdown’s Domestic Fallout
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Air travel delays: Air traffic controllers received their first $0 paycheck, while the FAA reported widespread staff shortages.
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Food insecurity: The Department of Agriculture warned it lacks the $8 billion needed to fund SNAP (food stamp) benefits for November.
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State interventions: Governors in Virginia and South Carolina have redirected local funds to sustain food assistance programs.
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Legal action: A coalition of 25 Democratic-led states and Washington, D.C. has filed a lawsuit to block pending cuts to federal nutrition aid.
Transportation Secretary Sean Duffy cautioned that the prolonged shutdown could cause “long-term damage” to critical systems, including air safety and holiday travel operations.
As Trump moves to solidify U.S. trade power abroad, mounting domestic pressure continues to test his administration’s ability to balance foreign policy success with domestic economic strain.
