• President Trump authorized South Korea to build nuclear-powered submarines as part of a nearly $1 trillion trade agreement.
• South Korea will pay $350 billion to reduce tariffs and invest $600 billion in American energy and businesses.
• The submarine will be constructed at Philadelphia shipyards, marking a boost for U.S. manufacturing and military alliance.

GYEONGJU, South Korea (TDR) — President Donald Trump announced Wednesday that he approved South Korea‘s request to build nuclear-powered submarines, a significant shift in U.S. nonproliferation policy that comes alongside a massive trade agreement between the two nations. The deal, totaling nearly $1 trillion in investments and payments, strengthens the military alliance while delivering economic benefits to American workers and industries.

Historic submarine approval

“Our Military Alliance is stronger than ever before and, based on that, I have given them approval to build a Nuclear Powered Submarine rather than the old-fashioned and far less nimble diesel-powered Submarines that they have now,” Trump posted on Truth Social. The president later clarified that construction will take place in Philadelphia, declaring “Shipbuilding in our Country will soon be making a BIG COMEBACK.” South Korean President Lee Jae Myung specifically requested permission during their bilateral meeting to reprocess nuclear fuel for conventionally armed, nuclear-powered submarines. Current agreements between the two nations prohibit such reprocessing without U.S. approval. Lee emphasized the submarines would use conventional weapons, not nuclear arms, and would help track North Korean and Chinese vessels while reducing the burden on American forces.

Massive financial commitments

The comprehensive trade deal includes multiple components designed to benefit American interests. South Korea agreed to pay the U.S. $350 billion in exchange for reduced tariffs, bringing its auto duties in line with those imposed on Japan. Additionally, Seoul committed to purchasing American oil and gas “in vast quantities” and pledged that investments by South Korean companies and businessmen will exceed $600 billion. A major piece of the investment package includes Korean Air‘s commitment to purchase 103 new Boeing aircraft for $36.2 billion, a move expected to support up to 135,000 American jobs. The Republic of Korea Air Force will also invest $2.3 billion to develop aircraft with an American technology company.

Strategic and symbolic gestures

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During the summit at Gyeongju, the historic capital of the ancient Silla Dynasty, Trump received South Korea‘s Grand Order of Mugunghwa, the nation’s highest civilian honor, along with a replica of a royal crown from the Silla Kingdom. The president praised both awards volubly, calling it “a great trip, with a great Prime Minister.” Lee told Trump the goal was to modernize the alliance with the U.S., noting plans to increase military spending to reduce the financial burden on America. “If fuel supply is permitted, we can build several submarines equipped with conventional weapons using our own technology to defend the waters around the Korean Peninsula, ultimately reducing the burden on U.S. forces,” Lee said.

Regional implications and timeline

The submarine approval represents a significant policy shift, as nuclear-powered vessels boast longer range and underwater endurance than conventional boats, making them ideal for high-endurance patrols. However, some analysts question whether South Korea‘s Navy, primarily postured against North Korea, requires such capabilities given its traditional mission set. The timeline for the submarine project remains unclear. The White House released a fact sheet with additional details but has not specified construction schedules or delivery dates. Trump‘s visit to South Korea was part of a broader Asia trip that included stops in Malaysia and Japan, where he signed a framework agreement on critical minerals and rare earths with Prime Minister Sanae Takaichi, the country’s first female leader.

Will South Korea’s nuclear submarine capability reshape the balance of power in the Indo-Pacific region?

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