President Donald Trump appears to have gotten ahead of himself this week amid long-running negotiations with South Korea, potentially hindering the countries’ trade relationship.
Since securing last year’s $350 billion trade agreement, Trump has sought to turn Seoul’s pledge into U.S. energy projects in exchange for a lower tariff rate of 15 percent, down from the previous 25 percent, on South Korean goods.
He touted part of that exchange—$54 billion—at an Oval Office event on Wednesday. The South Korean investment would go to a struggling natural gas project in Alaska.
He then promoted it again on Truth Social, saying that the two countries have “agreed to commence working together” on the “50 billion ALASKA LNG PROJECT.”
But Seoul said it has made no firm commitment to that Alaska project, as it has not been fully reviewed for commercial and legal requirements.
South Korean Minister of Trade, Industry and Resources Kim Jung-kwan spoke in a press briefing in Sejong on Thursday about the wild figures.
“Putting figures or using definitive language goes far beyond what was agreed,” Jung-kwan said, according to South Korean news agency Yonhap. “The Alaska project will proceed only if it is commercially viable.”
He said he brought up his objection with Commerce Secretary Howard Lutnick on Thursday morning and expressed disappointment that the U.S. announcement exceeded the agreement, according to a prominent Korean media outlet.
Trump then posted again on Thursday after Jung-kwan’s response, saying the two countries “agreed to launch 200 Billion dollars of new investments in AMERICA!”
He continued, listing a $120 billion nuclear program and other U.S. energy increments as part of that deal in nuclear energy, gas and oil.
The mismatch between Trump’s definitive public claim and Seoul’s explicit denial that it had reached a firm Alaska LNG commitment suggests the administration announced a headline-grabbing energy victory before securing the underlying investment decision.
In the energy world, Seoul’s public hesitation adds to long-running doubts about the viability of the long-delayed and costly Alaska LNG project, which still lacks a final investment decision and enough binding agreements with buyers to secure financing.
Trump gave the public another negotiations update on Friday morning with his unfiltered internet diary, saying, “The Republic of Korea Deal keeps getting BETTER! 8.4 Billion Dollars for an enhanced Oil Recovery Project.”
South Korea also pushed back on this announcement, saying the oil project is not part of the same aforementioned energy investment, according to Reuters.
White House spokeswoman Taylor Rogers didn’t address Jungkwan’s comments when she told CNN, “Wednesday’s joint announcement was historic for the great state of Alaska, the United States, and the Republic of Korea.”
The Daily Beast has reached out to the White House for comment.
