Trump Pressures Japan and South Korea on Investment Pledges

President Donald Trump has linked the maintenance of reduced 15 percent tariffs on Japanese and South Korean imports to the swift delivery of massive industrial investment packages. Japan has pledged US$550 billion through 2029 to rebuild American industries, a deal Trump compared to a baseball "signing bonus." In exchange, the U.S. lowered tariffs from 25 percent. Japanese Trade Minister Ryosei Akazawa recently met with U.S. Commerce Secretary Howard Lutnick in Washington to accelerate the first batch of projects, which may include a SoftBank Group-led data center and a Gulf of Mexico oil terminal. Akazawa described the negotiations as "extremely tough," noting that "significant gaps" remain regarding project viability and financial metrics.

South Korea faces similar pressure after pledging US$350 billion in investments to secure the same 15 percent tariff rate. Trump warned that tariffs could return to 25 percent due to legislative delays in Seoul. South Korean Trade Minister Yeo Han-koo reaffirmed the government's commitment to the agreement during a February 12 luncheon, while Foreign Minister Cho Hyun-taek engaged U.S. officials to explain that South Korea's domestic legislative process differs from Japan's. Despite these explanations, the U.S. has not withdrawn its tariff threats.

Both nations are racing to demonstrate progress before upcoming diplomatic milestones, including a planned visit to the White House by Japanese Prime Minister Sanae Takaichi on March 19. Trump has claimed these broader trade strategies have already increased U.S. coal exports.