President Trump said Friday he did not act too soon in announcing South Korea's stake in the long-planned Alaska LNG project, after Seoul indicated the $54 billion pipeline commitment was not yet finalized. He threatened to double tariffs on South Korean goods if Seoul fails to finalize its participation, and said the broader trade package includes $8.4 billion for a US oilfield project that caught Seoul's industry ministry by surprise.
Trump defends Alaska LNG rollout
Trump said Friday he had not acted too soon when he announced South Korea's involvement in Alaska LNG, a natural gas export project that has been planned for decades but still lacks binding commitments. He had unveiled plans Wednesday for South Korea to invest $200 billion in US projects, but Seoul quickly said the $54 billion pipeline tied to Alaska LNG was not yet set in stone.
According to Reuters: "If they don't want to do it, that's OK with me", Trump told reporters at the White House. He added that Washington would respond by raising tariffs on South Korean goods instead.
Tariff threat follows pushback from Seoul
Trump has threatened to double import tariffs on South Korean goods if Seoul fails to finalize its participation in the LNG venture. The threat follows pushback from South Korean officials over the scope of their commitment: the White House had touted the project as a cornerstone of Seoul's broader investment pledges, while Korean representatives said domestic involvement remains subject to a formal economic viability assessment.
He also said Friday that the trade deal with South Korea includes $8.4 billion for a project to push out crude from an aging US oilfield. Seoul's industry ministry, however, said an official was surprised by the claim, according to Yonhap. The official noted the agreement is limited to what was in a joint fact sheet that Seoul and Washington released in November 2025. The claim touches on crude oil output from the aging US field at the center of the dispute.
Pipeline scope and political stakes
The push to steer investment into Alaska LNG puts fresh focus on a project that would cost more than twice as much as a comparable US Gulf Coast plant. It calls for a pipeline stretching more than 800 miles (1,300 km) from the North Slope to a liquefaction facility at the southern port of Nikiski.
South Korea's $200 billion commitment also covers eight large nuclear power plants, a natural gas pipeline and a 6-gigawatt power plant in Texas. It is the first set of projects under a broader $350 billion strategic investment package Seoul agreed to as part of last year's trade deal with Washington.
Beyond trade policy, the venture carries political weight ahead of the upcoming congressional midterms, with Republican strategists viewing it as an economic centerpiece in Alaska, where a competitive Senate race continues to draw national attention. It remains uncertain whether the White House retains legal authority to unilaterally impose retaliatory tariffs, after judicial rulings earlier this year curbed unilateral presidential tariff powers.
Sources: Investing.com, Investing.com
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