Trump once again caused headaches for his East Asian allies by boasting about his achievements. Recently, in the White House office, he boasted to the journalists present that he had successfully brought a large amount of revenue and investment to the United States through tariff policies. Among them, Japan and South Korea promised a total investment of 90 billion dollars, which Trump described as "prepaid" fees. This statement immediately left Tokyo and Seoul confused and bewildered, as both countries stated that they had never agreed to such a deal, and they had never agreed to pay the investment funds in advance. South Koreans were even more stunned.

Trump is boasting again, but Japan and South Korea are worried

Reuters reported that compared to the US-Japan trade negotiations, the US-South Korea negotiations were more difficult than expected. In July this year, South Korea followed Japan's example and reached an agreement with the United States on the principle of "investment for lower tariffs." South Korea pledged to provide 3.5 trillion dollars in investments to the United States, and in return, the United States offered a 15% tariff treatment. South Korea temporarily felt relieved, but when it came to finalizing the negotiation details, South Korea found that it was extremely difficult to conclude a trade agreement with the Trump administration. The main issue was that the Trump administration demanded complete control over the funds. The reason for this situation mainly relates to the US-Japan negotiations.

The United States first reached a consensus with Japan and completed the signing of the trade agreement. Tokyo committed to investing 5.5 trillion dollars in the United States and made partial concessions regarding the control of the investment fund, which gave the Trump administration a big reward. Subsequently, they used this as a model to pressure South Korea, asking Seoul to follow suit. However, South Korea's situation is different from Japan's. Their economy and the dollar reserves held by the country cannot be compared to Tokyo's. If they agree to the American request, there may be an economic crisis domestically.

Lee Jae-myung repeatedly emphasized that if the United States does not provide "currency exchange" and other "economic security," South Korea will not be able to afford large-scale dollar cash investments. However, the Americans did not respond to this proposal, and analysts generally believe that the possibility of reaching a "currency exchange agreement" is low. If the Trump administration were willing to accept it, they would have already agreed. Therefore, the US-South Korea trade agreement negotiations have been stuck in a deadlock.

Lee Jae-myung found it very difficult to negotiate with Trump

Unforeseen circumstances arose again, and while Trump was boasting in the White House, he suddenly introduced a "prepayment." Compared to Japan, which has already formally concluded a trade agreement for a long time, South Korea, which is still stuck in the negotiation stage, was even more surprised by Trump's unilateral statement. It is worth noting that the Seoul government has consistently emphasized that although they have pledged to invest 3.5 trillion dollars in the United States, it is not a one-time investment, and there is no mention of "prepayment" at all.

An anonymous South Korean government official told Reuters: South Korea is unsure whether Trump did not see the initial basic consensus between the US and South Korea or whether he deliberately misunderstood. Trump's statement contradicts the South Korean government's understanding of the US-South Korea trade agreement. South Korea never considered making a one-time investment of these funds, nor did they have any "prepayment." The official also emphasized that when they studied the US-Japan trade agreement, they did not find this content. Both Japan and South Korea were preparing to provide financing after receiving the notice from the United States to make the investment.

Now, Trump's unilateral statement has once again caused anxiety in the market and investors regarding the stalled US-South Korea trade negotiations. Internally in South Korea, there is also high concern that, according to the current trend, Seoul is likely to only receive a very unfair and unequal agreement, or even end up with no conditions at all, and the negotiations could ultimately collapse.

Now South Korea is really frustrated with Trump, and many satirical comic posters have appeared on the streets

In addition, the Lee Jae-myung government is also worried about another point: now there is a growing voice within South Korea demanding "no investment, just accept the tariff." If Trump keeps causing trouble, under domestic pressure, Lee Jae-myung may not be able to compromise with Trump anymore, which will greatly affect the US-South Korea relationship.

Original article: https://www.toutiao.com/article/7554599764428390950/

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