South Korea’s talks to finalize a US trade deal have hit a snag over details of a $350 billion investment fund that both sides agreed to as part of the broader deal. A top Seoul official has warned that even the shipbuilding partnership may be at risk if they fail to reach an agreement.
Kim Yong-beom, director of national policy for South Korea’s presidential official, said Seoul cannot accept the same terms as Japan’s $550 billion investment pledge, which was finalized last week through an executive order from President Trump. Yong-beom cited differences in size of the two economies and also repercussions on the foreign exchange market.
“Without an agreement, it will be difficult for the MASGA project to even get off the ground,” Kim said, referring to Make American Shipbuilding Great Again.
Meanwhile, the US Treasury Department would have to give rebates if the Supreme Court decides that President Trump’s “reciprocal” tariffs went beyond his authority, Secretary Scott Bessent said Sunday.
“We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” Bessent said.
Amid legal questions hanging over tariffs, Trump has asked the Supreme Court for an immediate hearing in hopes of overturning an appeals court ruling that deemed most of his tariffs illegal. A federal appeals court ruled that most of Trump’s global tariffs were illegal, reaffirming an earlier ruling by the Court of International Trade and saying he exceeded his authority in using emergency powers to impose them.
His administration called for the high court to put the case on a highly expedited schedule, with arguments starting in early November, according to filings.
Trump suggested that the US may have to “unwind” existing trade deals, including with the European Union, Japan, and South Korea, if the Supreme Court doesn’t uphold the tariffs.
In any case, it means the “reciprocal” tariffs Trump unveiled on dozens of US trade partners (which you can see in the graphic above) now face legal limbo.
