Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : World Outlook -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (51189)	1/27/2026 8:45:08 AM
From: Les H	Read Replies (1) \| Respond to of 51288

South Korea reassures on US investment pledge after Trump threatens to hike tariffs Story by Jihoon Lee, Kyu-seok Shim and Andrea Shalal, Reuters, January 27, 2026 SEOUL/WASHINGTON, Jan 27 (Reuters) - South Korea scrambled on Tuesday to assure the U.S. it remained committed to implementing a trade deal after U.S. President Donald Trump said he would hike tariffs on autos and other imports from its ally, blaming a delay in enacting the pact agreed last year. Trump said on Monday that South Korea's parliament was not living up to its side of the deal by swiftly enacting the agreement he reached with President Lee Jae Myung to make huge investments in U.S. business projects in return for tariff cuts. For South Korea, the decision, which officials in Seoul said caught them by surprise, is the latest setback as it tries to navigate the alliance and trade partnership amid potential challenges to its security and financial stability posed by Trump's demands. Trump and Lee struck a deal in principle last July for Seoul to make $350 billion of investments in the U.S., despite concerns over the impact of such a large outflow from Asia's fourth-largest economy. Trump said South Korea's legislature had not enacted the deal and as a result: "I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%." CURRENCY CONCERNS Under the deal struck last year, South Korea committed to pay $200 billion of the $350 billion in cash in phased installments capped at $20 billion a year in an effort to maintain won stability. Earlier this month, South Korea's Finance Minister Koo Yun-cheol told Reuters the government planned to implement the investment package as soon as possible, while noting that uncertainty over a U.S. Supreme Court ruling on Trump's tariffs expected soon could affect the process. But highlighting how the timeline may be stretched, he said the planned investment of $350 billion was unlikely to kick off in the first half of 2026, given the weakness in the won. The prospect of large currency outflows has caused headaches for authorities in Seoul at a time when the won has slumped to levels unseen since the global financial crisis from 2007 to 2009. TRUMP ANNOUNCEMENT PUZZLES SOUTH KOREA It was not immediately clear when the hike would take effect. A source familiar with internal discussions between the countries said Trump may have been prompted by recent Korean regulatory actions against Coupang, a U.S.-listed company that has said the moves are unfair and discriminatory. The countries have been in talks to address Washington's concerns about regulations on U.S. tech firms as part of the trade deal. South Korea's presidential Blue House said it was committed to implementing the deal and would continue to take the required steps to finalise it. South Korea reassures on US investment pledge after Trump threatens to hike tariffs