Trump Approves South Korean Nuclear Submarines in Massive Trade Deal

President Donald Trump and South Korean President Lee Jae Myung finalized a comprehensive trade and security agreement in late 2025, centered on a $350 billion investment package from South Korea. The deal reduces U.S. import duties on South Korean goods, including automobiles and auto parts, from 25% to 15%. The investment is structured as $200 billion in cash installments—capped at $20 billion annually to maintain currency stability—and $150 billion dedicated to the American shipbuilding industry.

As a primary security concession, Trump approved South Korea's construction of nuclear-powered submarines to counter threats from North Korea and China. While Trump repeatedly stated the vessels would be built at the Hanwha-owned Philly Shipyard in Philadelphia, Pennsylvania, South Korean officials, including President Lee, maintained that domestic construction is necessary for technology transfer and feasibility. The agreement also includes U.S. support for South Korea's pursuit of uranium enrichment and spent nuclear fuel reprocessing.

Beyond maritime security, South Korea committed to increasing defense spending to 3.5% of its GDP by 2035 and purchasing $25 billion in U.S. military equipment by 2030. In a separate strategic move, Trump ordered the U.S. Department of Defense to resume nuclear weapons testing to maintain parity with other nuclear powers. These developments drew condemnation from the Government of North Korea and the Government of China, both of which urged adherence to nuclear non-proliferation obligations.