Foreign companies could face tariffs ranging from 150% to 300% if they do not establish manufacturing plants in the United States, U.S. President Donald Trump has warned. This policy is part of Trump’s broader strategy to boost foreign investment and expand domestic manufacturing. Companies have approximately 18 months to comply before the new tariffs might be imposed.
The warning coincides with ongoing negotiations between the United States and South Korea over a substantial $350 billion investment package. The agreement includes a reduction in tariffs on Korean goods, from 25% to 15%, in exchange for South Korea’s investment in the U.S. economy. Notably, the package allocates $150 billion for shipbuilding cooperation and $200 billion for strategic investments.
Despite progress, South Korea and the U.S. remain divided over South Korea’s potential involvement in the proposed Alaska LNG project. This project, with an estimated cost between $44.5 billion and $54.5 billion, would involve the construction of a major pipeline, gas treatment facilities, and an LNG terminal. South Korean officials have indicated that the project still requires a review of its commercial viability before any final investment decision can be made.
As a part of this investment agreement, the first confirmed project is a gas-fired power plant in Texas. The two nations have also discussed the possibility of cooperation on nuclear reactors, though those plans are still under review.