[Edaily Reporter KIM YOON JI ] U.S. President Donald Trump reiterated on the 6th (local time) that “if South Korea wants to lower tariffs, it must pay the price.”
He made these remarks during a visit to Sparrows Point in Baltimore, Maryland, stating, “South Korea recently provided us with $150 billion, and this is South Korea’s way of lowering tariffs.” Referring to Hanwha’s Philly Shipyard, he explained, “They are investing billions of dollars. It’s a very large and long-established shipyard.”
Last year, South Korea pledged a total of $350 billion in investments in the U.S.—including shipbuilding cooperation ($150 billion) and strategic investments ($200 billion)—in exchange for lowering tariffs from 25% to 15%. Regarding strategic investments, the two countries have finalized a $22.3 billion project to build a gas-fired combined-cycle power plant in Encinitas, Texas, as their first initiative, and have announced that the construction of eight large nuclear power plants and the Alaska liquefied natural gas (LNG) project will be subject to further discussions.
However, President Trump appears to be treating the LNG project as a done deal. Critics point out that this is part of a series of efforts to highlight economic and investment achievements ahead of the November midterm elections. As voter dissatisfaction over the war with Iran and high gasoline prices grows, President Trump is promoting South Korea’s investment in the U.S. as one of his own achievements.
The event was organized for Endure, a U.S. defense technology company, to unveil its plan to invest $3.7 billion in building a shipyard in Sparrow Point, Maryland. The project includes a $2.9 billion contract with the U.S. Navy to produce submarine components, including torpedo tubes and hatches. The shipyard has been named “Arsenal-2” and is expected to begin operations before 2030.

President Trump said, “Right here at Sparrow Point, we will build the next generation of American submarines,” adding, “Autonomous submarines, torpedo tubes, and key components for the state-of-the-art Virginia-class attack submarines will be produced here.” He went on to describe the Virginia-class submarines as “the best and quietest submarines ever built.”
Ahead of the midterm elections, President Trump has been touring the country, announcing various private-sector investments and government spending projects—or touting them as his own achievements. Reuters reported that he refers to these measures as a sort of “gift package.”
President Trump stated, “American taxpayers will hold a 40 percent stake in the new shipyard.” However, he did not explain how this stake would be secured.