Trump wants a 'one-stop shopping' deal with South Korea on trade and defense, but there is a cost
Sharing the costs of hosting U.S. troops in allied countries has been a favorite topic of U.S. President Donald Trump since his first term in the White House.
But as more countries try to eke out a deal to escape the spectre of tariffs in his second term, Trump is making his own moves: bundling negotiations on trade, tariffs, and defense cost-sharing into a single comprehensive deal, which he called "one-stop shopping."
One such country in his sights is South Korea, which is home to about 28,500 U.S. troops known as U.S. Forces Korea. On April 8, Trump wrote on Truth Social that he had discussed "payment for the big time Military Protection we provide to South Korea," among other issues, with then-acting president Han Duck-soo.
"We are bringing up other subjects that are not covered by Trade and Tariffs, and getting them negotiated also. "ONE STOP SHOPPING" is a beautiful and efficient process!!!" Trump wrote.
While South Korean officials have reportedly said that defense payments are off the table, the country's two leading presidential candidates, Lee Jae-myung and Kim Moon-soo, have hinted that they are open to discussing a defense cost-sharing agreement.
However, analysts told CNBC that a transactional approach wouldn't necessarily work in the U.S.'s favor.
At the Munich Security Conference in February, then-Singapore Defence Minister Ng Eng Hen said, "It has been said that trade and security are two sides of the same coin, and one assumes that as trade dependencies shift, security alliances will follow."
But, the image of the U.S. in Asia, Ng said, "has changed from liberator to great disruptor to a landlord seeking rent."
The U.S. president is likely to bring defense payments up in trade talks, Bruce Bennett, Professor of Policy Analysis at the RAND School of Public Policy, told CNBC.
"It's the way he does business," Bennett said. "So it's not like he definitely wants to bring troops home, but it is a matter that he wants the recognition and the acceptance of responsibility from our allies," he added.
This was the stance espoused by U.S. Under Secretary of Defense Elbridge Colby, who said in a 2024 interview that U.S. Forces Korea should be overhauled to be "more relevant" to handling China, as opposed to North Korea.
One way South Korea could "pay more" is by investing in its forces and buying more U.S. military equipment, Bennett said.
This will enable the South Korean military to plug any capability gaps while allowing U.S. Forces Korea to focus more on China, he added.
"[If] the Korean government says we're volunteering to ...raise our budget by $3 or $4 billion, we're going to use it to buy equipment so that the U.S. can have a shift in focus, I think that would go a long way to meeting the President's interests."
South Korea spent 2.6% of its GDP on defense in 2024, more than the global average of 2.5%, and one of the highest in the world, according to the Stockholm International Peace Research Institute.
In 2025, the country allocated 61.25 trillion South Korean won ($43.83 billion) for defense, or a 3.1% increase from the year before.
However, such a transactional approach will damage U.S. credibility, Hoshik Nam, assistant professor at the Department of Sociology and Political Science at Jacksonville State University, said.
Using the deployment of U.S. forces as leverage in trade negotiations could lead close allies to perceive U.S. commitments as less credible, Nam added.
"In the long term, this position could reframe the U.S. as an isolated superpower."
South Korea wasn't required to make any financial contribution in its original 1966 agreement with the U.S on troops stationed in the country, known as the Status of Forces Agreement.
Cost sharing only became a feature of the alliance in 1991, when Seoul agreed to share some of the burden of stationing U.S. troops in three areas, namely logistics, local labor, and military construction.
Nam explained that South Korea's rapid economic growth from the 1960s created the conditions for cost-sharing.
"Both countries also agreed that their relationship should move beyond a simple aid-provider and recipient dynamic," he noted.
The funds provided by the South Korean government also created local jobs and helped local industries, Nam said.
"Regarding construction, most projects are carried out by Korean construction companies. In terms of logistics, the equipment, services, and facilities are all supplied by Korean companies," Nam highlighted.
In October 2024, Seoul agreed to raise its contribution for hosting U.S. troops by 8.3% in 2026, to 1.52 trillion won ($1.13 billion).
However, Trump's 'one stop shopping' stance to bundle trade with defense agreements could throw the latest cost-sharing agreement by the Biden administration into jeopardy, given that the 2024 agreement covers the period of 2026-2030.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Barabak: Newsom stood tall against Trump. Does that make him presidential timber?
Today we discuss presidential politics, window treatments and disasters of the natural and man-made variety. Time for Gavin Newsom to start measuring those White House drapes. Huh? You know, president of the United States. I'm thinking something Earth-friendly, like recycled hemp. Wait, what? Did you catch the nationally televised speech the governor recently gave? The one about "democracy at a crossroads." I did. It was a fine speech and the governor made some important points about President Trump's reckless commandeering of California's National Guard, his administration's indiscriminate immigration raids and the wholly unnecessary dispatch of Marines to Los Angeles. (From the halls of Montezuma, to the shores of Venice Beach.) Newsom was plenty justified in his anger and contempt. Trump, acting true to his flame-fanning fashion, turned what was a middling set of protests — nothing local law enforcement couldn't handle — into yet another assault on our sorely tested Constitution. Newsom's speech certainly "met the moment," to use one of his favorite phrases. I'll grant you that. Unlike a lot of extracurricular activities aimed at boosting his presidential prospects, Newsom was addressing a Trump-manufactured crisis unfolding right here at home. It was a moment that called for gubernatorial leadership. Just the kind of leadership despondent Democrats need. So it's been said. It's not much of a leap to see Newsom leading the anti-Trump opposition clear to the White House! Actually, that's a bigger leap than it takes to clear the Grand Canyon. Read more: Barabak: Putting the bully in bully pulpit, Trump escalates in L.A. rather than seeking calm Granted, Newsom's speech received a lot of raves from Democrats across the country. Many are desperate for someone in a position of power to give voice to their blood-boiling, cranium-exploding rage against Trump and his many excesses. Newsom did a good job channeling those emotions and articulating the dangers of an imprudent president run amok. But let's not go overboard. There is no lack of Democrats eager to take on Trump and become the face of the so-called resistance. There is no shortage of Democrats eyeing a 2028 bid for the White House. Those who run won't be schlepping all the political baggage that Newsom has to tote. Such as? Rampant homelessness. An exploding budget deficit. Vast income inequality. Plus, a lot of social policies that many Californians consider beneficent and broad-minded that, to put it mildly, others around the country consider much less so. Don't get me wrong. I love California with all my heart and soul. But we have a lot of deep-seated problems and cultural idiosyncrasies that Newsom's rivals — Democrat and Republican — would be only too happy to hang around his neck. So let's not get too caught up in the moment. The fundamentals of the 2028 presidential race haven't changed based on a single — albeit well-received — speech. It's still hard to see Democrats turning the party's fate over to yet another nominee spawned in the liberal stew of San Francisco politics and campaigning with kooky California as a home address. Stranger things have happened. True. That said, 2028 is a zillion political light years and countless news cycles away. First come the midterm elections in November 2026, giving voters their chance to weigh in on Trump and his actions. The verdict will go a long way toward shaping the dynamic in 2028. Well at least Newsom has brought his A-game to social media. His trolling of Trump is something to behold! Whatever. Read more: Lopez: My theory for why Trump's agents targeted Dodger Stadium and a bus stop outside Winchell's You're not impressed? I think it's best to leave the snark to professionals. I do, however, have some sympathy for the governor. It's not easy dealing with someone as spiteful and amoral as the nation's ax-grinder-in-chief. Consider, for instance, the disaster relief money that fire-devastated Southern California is counting on. Helping the region in its time of desperate need shouldn't be remotely political, or part of some red-vs.-blue-state feud. Historically, that sort of federal aid has never been. But this is Trump we're dealing with. To his credit, Newsom tried making nice in the days and weeks following the January firestorm. He ignored the president's provocations and held what was later described an an amicable session with Trump in the Oval Office. Their working relationship seemed to be a good one. Read more: Barabak: If Gavin Newsom wants to be president, he's got work to do — starting at home But few things last with the transactional Trump, save for his pettiness and self-absorption. Asked last week if his "recent dust-ups" with Newsom would impact the granting of wildfire relief, Trump said, "Yeah, maybe." He called Newsom incompetent, trotted out more gobbledygook about raking forests and then soliloquized on the nature of personal relationships. "When you don't like somebody, don't respect somebody, it's harder for that person to get money if you're on top," Trump said. Yeesh. Responding in a posting on X, Newsom correctly noted, "Sucking up to the President should not be a requirement for him to do the right thing for the American people." Hard to argue with that. Yet here we are. The nation's second-most populous city is occupied by National Guard and Marine troops. Thousands of people — displaced by disaster, their past lives gone up in smoke — are hostage to the whims of a peevish president who always puts his feelings first and cares nothing for the greater good. The midterm election can't come soon enough. Get the latest from Mark Z. BarabakFocusing on politics out West, from the Golden Gate to the U.S. me up. This story originally appeared in Los Angeles Times.
Newsweek
22 minutes ago
- Newsweek
Satellite Images Show 'Unusual' Activity at Iran Nuclear Site Before Strikes
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Satellite imagery captured ahead of U.S. strikes on three major Iranian nuclear sites showed "unusual" movement around the entrance to Iran's Fordow enrichment facility. Pictures captured on Thursday and Friday showed "unusual truck and vehicular activity" close to the entrance of the underground Fordow complex south of Tehran, satellite imagery giant Maxar said late on Saturday U.S. time. A total of 16 cargo trucks were spotted on the access road leading up to the Fordow tunnel entrance on Thursday, but most of the trucks had relocated to one kilometer (0.6 miles) northwest of the access road by the following day, Maxar said. New trucks and multiple bulldozers had appeared close to the main entrance by Friday, with one truck very close to the main tunnel entrance, the satellite imagery provider said. U.S. President Donald Trump said on Saturday evening the U.S. had bombed the Fordow, Natanz and Isfahan sites in central Iran in "massive precision strikes" to take out Tehran's nuclear enrichment facilities and Iran's ability to make a nuclear weapon. Satellite imagery captured by Maxar on June 19 showing cargo trucks close to the underground entrance of the Fordow fuel enrichment facility, prior to U.S. air strikes on the underground complex. Satellite imagery captured by Maxar on June 19 showing cargo trucks close to the underground entrance of the Fordow fuel enrichment facility, prior to U.S. air strikes on the underground complex. Satellite image ©2025 Maxar Technologies The strikes were a "spectacular military success," Trump said. "Iran's key nuclear enrichment facilities have been completely and totally obliterated." Israel launched strikes on Iran's nuclear facilities and scientists, as well as the country's ballistic missile sites and other military assets, late on June 12 U.S. time. Iran responded with drone and ballistic missile barrages. Israel targeted Natanz and Isfahan, but experts said only the U.S.'s B-2 heavy stealth bombers and 30,000lb "bunker buster" bombs could successfully take out Fordow, a complex built deep into a mountain roughly 60 miles from Tehran. Fordow's existence was secret until 2009. This is a developing story and will be updated.
Yahoo
22 minutes ago
- Yahoo
U.S. bombs Iran nuclear sites, Trump issues warning
U.S. bombs Iran nuclear sites, Trump issues warning originally appeared on TheStreet. The U.S. has carried out a major strike on Iran on Saturday, bombing three of its key nuclear facilities — Fordo, Natanz, and Isfahan. President Donald Trump confirmed the move on Truth Social, calling it a 'successful attack' and warning Iran not to retaliate. In an address to the nation, Trump said, 'Iran's key nuclear enrichment facilities were completely and totally obliterated,' he said. 'Any future attacks would be far greater and a lot easier.' The strikes come on the ninth day of escalating conflict between Israel and Iran, with the U.S. now directly involved. Iran's Foreign Minister Abbas Araghchi reacted swiftly, calling the attacks a 'grave violation' of international law and said Iran 'reserves all options' to defend itself. 'The events this morning are outrageous and will have everlasting consequences,' he posted on X, adding that Iran would act under the UN Charter's self-defense provisions. U.S. officials are on high alert for possible retaliation over the next 48 hours, especially against U.S. bases in the Middle East. In Latin America, however, the reaction has been less supportive. Leaders from Mexico and Cuba condemned the strike and urged diplomatic solutions. At the White House, top officials including VP JD Vance, Defense Secretary Pete Hegseth, and National Intelligence Director Tulsi Gabbard were present in the Situation Room during the attack. The U.S. Navy also launched 30 Tomahawk missiles as part of the strike. And Trump's message to Iran was loud and clear: 'ANY RETALIATION... WILL BE MET WITH EVEN GREATER FORCE.' As war jitters spread globally, crypto markets responded. Bitcoin slipped below $103,000, and Ethereum dropped 5.7% to $2,287. The total crypto market cap fell 3.7% to $3.26 trillion in the past 24 hours. Traders seem to be taking profits and hedging risk amid geopolitical uncertainty. U.S. bombs Iran nuclear sites, Trump issues warning first appeared on TheStreet on Jun 22, 2025 This story was originally reported by TheStreet on Jun 22, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
