U.S. President Donald Trump told South Korea’s acting president Han Duck-soo on April 8 that he intends to bundle negotiations on trade, tariffs, and defense cost-sharing into a single comprehensive deal, calling the approach “ONE STOP SHOPPING – a beautiful and efficient process!”
The surprise move throws into doubt the Special Measures Agreement (SMA) signed with the Biden administration less than six months ago, effectively forcing it back to the negotiating table. The agreement, finalized in October 2024, outlines South Korea’s financial contribution for hosting U.S. troops through 2030.
With Trump’s latest tariff decision already undercutting the U.S.-Korea Free Trade Agreement (KORUS FTA), officials fear the SMA could face a similar fate.
Analysts say South Korea should respond with a broad, strategic approach—offering concessions where needed while securing meaningful gains. With Trump eager to notch early wins in economic diplomacy, flashy outcomes may matter more than technical details.
“A top-down, all-inclusive deal will work best with Trump,” said Yoon Kang-hyun, a former deputy foreign minister for economic affairs who led negotiations with the U.S. during Trump’s first term. “Instead of dividing the issues by sector, we need a bold package deal.”
Trade Minister Ahn Duk-geun underscored Seoul’s top priority: preserving the KORUS FTA. “We must preserve the free trade agreement through negotiations,” he told lawmakers on April 9 during a parliamentary committee hearing.
Trump’s push for “one-stop shopping” has prompted calls in Seoul to consider tying defense cost-sharing with broader trade and tariff issues. Some experts say that could include offering to cover the full cost of U.S. forces in Korea.
“Trump once demanded a fivefold increase in our contribution, but what he really wants is a deal he can promote as a win,” said former foreign minister Yu Myung-hwan. “If South Korea shoulders 100% of the cost and gains stronger U.S. commitments on extended deterrence, including the nuclear umbrella, it could be a viable trade-off.”
Yu added that such a deal could serve as a model for Trump to pressure NATO allies to boost their defense spending.
Former foreign minister Song Min-soon echoed the sentiment, suggesting South Korea use the talks to revise its bilateral nuclear agreement with the U.S.
“If Trump brings a chessboard, we bring a Go board,” he said. “We cover the full cost of U.S. troops, and in return, gain the right to enrich uranium like Japan does.”
Currently, South Korea must consult with the U.S. to enrich uranium beyond 20%, while Japan enjoys more autonomy under its nuclear cooperation agreement with Washington.
Choi Kang, president of the Asan Institute for Policy Studies, said the renewed negotiations must focus on the alliance’s strategic purpose.
“There’s growing talk in Washington of positioning U.S. Forces Korea as a bulwark against China,” Choi said. “We must make clear their core mission is to defend South Korea.”
He warned against fixating on cost alone. “If we focus solely on the numbers, we risk losing sight of the bigger picture,” he said. “This is about reinforcing the U.S.-Korea alliance in Northeast Asia—especially as regional tensions with China continue to rise.”
Yoon cautioned that a fragmented approach by individual ministries would likely backfire.
“If each agency negotiates on its own, we’ll lose every time,” he said. “That’s what happened in Trump’s first term—agreements on cost-sharing, Iran sanctions, and more were repeatedly overturned by Trump himself.”
U.S. Treasury Secretary Scott Bessent said in an April 8 interview with CNBC that Trump plans to personally oversee negotiations on tariffs and trade. White House spokesperson Karoline Leavitt added that U.S. troop deployments and foreign aid could be integrated into broader trade talks, noting that Trump favors a tailored, country-specific approach.
Under the current SMA, South Korea agreed in October 2024 to raise its contribution for hosting U.S. troops by 8.3% in 2026, to 1.52 trillion won ($1.13 billion). The deal, which followed eight rounds of negotiations, runs through 2030.
That amount accounts for about 0.06% of South Korea’s GDP and roughly 40% of non-personnel stationing costs, though some estimates put the share above 50%. By comparison, Japan is believed to cover around 70%.
