Trump Warns Foreign Firms Could Face Tariffs of Up to 300% as South Korea Stumbles Over US Investment Deal

US President Donald Trump has warned that overseas companies that do not build factories in the United States could be hit with tariffs as high as 300 percent, even as South Korea faces renewed pressure from Washington over its $350 billion US investment pledge.

Speaking at a campaign rally in Vandalia, Ohio, on Saturday, Trump cast tariffs and foreign investment as central achievements of his economic agenda as he campaigned for Republican candidates ahead of the November 3 midterm elections. Ohio is home to a closely contested Senate race, with the economy and the cost of living at the forefront of the campaign.

Trump said foreign manufacturers would be given roughly 18 months to set up plants in the US before facing tariffs of between 150 and 300 percent. He listed South Korea alongside China, Japan and Canada while arguing that his trade penalties have driven overseas companies to invest in American manufacturing.

Alaska LNG Dispute

The comments came just a day after Trump ramped up pressure on Seoul over the proposed Alaska liquefied natural gas project, which has become a flashpoint in the implementation of the two countries' trade and investment agreement.

South Korea agreed last year to invest $350 billion in the United States in exchange for cutting tariffs on Korean goods from 25 percent to 15 percent. The deal includes $150 billion for shipbuilding cooperation and $200 billion for strategic investments.

Trump said this week that Korean participation in Alaska LNG forms part of that strategic investment package. Seoul has pushed back, saying it only agreed to begin reviewing the project and has yet to decide whether to invest, or how much.

On Friday, Trump rejected suggestions that he had moved too hastily in announcing Korean involvement. "I didn't jump the gun. I mean, they were there and they were represented," he said. He added that if South Korea does not wish to move forward, "that's okay with me. I'll just charge them more."

Economic Concerns

Seoul's caution reflects deep concerns about the project's economics. Lead developer Glenfarne Group estimates Alaska LNG would cost between $44.5 billion and $54.5 billion. Reuters reported that the cost per unit of annual production capacity would be more than double that of many recent US Gulf Coast LNG projects.

The venture would call for an 800-mile (1,287-kilometer) pipeline running from Alaska's North Slope to Nikiski, along with a gas treatment plant and a liquefaction terminal.

President Lee Jae Myung said in September that commercial viability has become a sticking point in negotiations with Washington, including how returns would be shared and who would absorb losses from projects that fail to turn a profit.

Lee said Seoul had sought to include the phrase "commercially reasonable" in the investment agreement.

Industry Minister Kim Jung-kwan has also said Korea should not pour money into projects that do not meet commercial benchmarks, while acknowledging that withdrawing from deals under the agreement could invite fresh US tariff threats.

Other Projects

The first confirmed project under the strategic investment package is a gas-fired power plant in Encinal, Texas. South Korea and the US have also discussed constructing eight large nuclear reactors, though Korean officials stress those ventures still require separate reviews before any final investment decisions are made.