Trump Threatens South Korea with Tariffs Over Alaska LNG Project

U.S. President Donald Trump has threatened to impose new trade sanctions on South Korea unless the country invests in a massive liquefied natural gas (LNG) project in Alaska. The $54 billion project was previously highlighted by Trump as a key component of South Korea's commitment to invest in the United States. However, the South Korean government has expressed reluctance, stating it would only move forward if the project proves economically viable.

In response to South Korea's hesitation, Trump stated, "If they don’t want to do it, that’s OK with me, I’ll just charge them higher tariffs." This rhetoric echoes similar threats he has made to other foreign governments in the past. However, it remains unclear whether Trump has the authority to unilaterally raise tariffs on South Korean goods, as the Supreme Court limited his tariff powers earlier this year.

The dispute threatens to worsen the growing tensions between the two longtime allies over trade and security. The two countries had previously agreed on several projects under a trade agreement reached last year, with South Korea pledging to invest hundreds of billions of dollars in the U.S.

The Alaska LNG project holds significant political importance for Trump and Republicans, as it is planned for a state with a closely contested Senate race during the upcoming November midterm elections. Additionally, Polar LNG, the company behind the project, aims to purchase discounted equipment from Russia’s Arctic LNG 2 project, which is currently under U.S. sanctions.