Trump Approves South Korean Nuclear Submarines in Massive Trade Deal

President Donald Trump and South Korean President Lee Jae Myung reached a comprehensive trade and security agreement during an October 2025 summit in Gyeongju. Under the deal, South Korea pledged a $350 billion investment package—comprising $200 billion in phased cash payments and $150 billion for U.S. shipbuilding—to secure a reduction in U.S. tariffs on Korean automobiles and parts from 25% to 15%. Additional terms included the purchase of U.S. oil and gas, 103 Boeing aircraft for $36.2 billion, and a commitment to increase defense spending to 3.5% of GDP by 2035.

In exchange for these economic concessions, Trump approved South Korea's construction of nuclear-powered submarines to replace its diesel fleet and granted access to restricted nuclear fuel. While Trump stated the vessels would be built at the Hanwha-owned Philly Shipyard in Philadelphia, President Lee later asserted that domestic production is more realistic to ensure technology transfer. The U.S. also expressed support for South Korea's pursuit of uranium enrichment and spent fuel reprocessing.

Simultaneously, Trump ordered the Department of Defense to resume U.S. nuclear weapons testing to maintain parity with China and Russia, reversing a 1992 moratorium. This decision drew condemnation from UN Secretary-General Antonio Guterres. The submarine initiative also sparked warnings from the Government of China regarding nuclear non-proliferation obligations and prompted North Korea to claim the move is a step toward nuclear weaponization.