Trump Threatens South Korea Over Alaska LNG Tariffs

President Donald Trump warned South Korea on Friday, October 2, 2026, that he would double financial burdens or impose additional tariffs if Seoul failed to immediately sign an agreement to participate in a $50 billion Alaska liquefied natural gas (LNG) project, money.kompas.com reported. The ultimatum follows conflicting statements from Washington and Seoul regarding the true status of bilateral energy investments, exposing a widening gap between what the White House claims is settled and what South Korean officials say is still under domestic review.

Trump Issues Tariff Threat Over Alaska LNG Dispute

Speaking from the White House, Trump asserted that South Korea was represented when officials discussed the pact, telling reporters that if Seoul refused to proceed, he would simply charge them more, according to Antara News. He told them, if they don’t sign it immediately, I’ll double it, though Trump did not explain specifically what he meant by doubling it. Bloomberg previously reported that Seoul intended to put 54 billion dolar AS into the Alaska project as part of a broader 350 miliar dolar commitment to invest in the United States during 2025, according to Antara News. However, South Korean Minister of Trade, Industry and Energy Kim Jung-kwan disputed the existence of any formal contract on Thursday, October 1, 2026, stating that the two governments had only agreed on three specific points in a fact sheet and that Washington’s statements exceeded actual discussions, as reported by Antara News. Trump rejected accusations that he rushed the announcement, stating, I didn’t rush to announce it.

The dispute comes after Trump claimed on Wednesday, September 30, that South Korea would invest $200 billion to support major nuclear energy and LNG projects in the U.S., including the Alaska venture. The Alaska pipeline project also carries political weight, as the state is a focal point for upcoming elections where Republican Senator Dan Sullivan is facing a reelection challenge from Democrat Mary Peltola.

Seoul and Washington Negotiate Texas Power and Oil Recovery Deals

Aside from the disputed Alaska pipeline, the bilateral economic package includes substantial energy ventures elsewhere in the United States. Trump announced an additional $8.4 billion enhanced oil recovery (EOR) project via Truth Social on Friday, October 2, 2026, intended to boost production from aging oil fields by injecting carbon dioxide into reservoirs, Kontan reported. Trump wrote that the deal with the Republic of Korea keeps getting better and that producing more oil and gas means energy dominance and American energy security for the future of the world. Meanwhile, official documents from the Republic of Korea’s website detail that Seoul and Washington formally agreed on October 1, 2026, to advance Project Star, a 22,3 miliar dolar combined-cycle gas turbine power plant in Encinal, Texas, designed to supply 6,472 megawatts to artificial intelligence data centers. That Texas venture involves Related Companies, NextEra Energy, and Lewis Energy Group, with commercial operations slated to begin in 2029 and full completion targeted for 2032.

Trump further noted that the investment package includes natural gas pipelines, eight large-scale nuclear power plants, and a 6 gigawatt power generation facility in Texas. These initiatives are part of a larger $350 billion strategic investment package agreed upon last year, with approximately $150 billion allocated to the shipbuilding sector.

More on this story: Trump Announces $54 Billion South Korean Investment for Alaska Gas Pipeline · US and China Agree to Cut Tariffs on $60 Billion in Goods

Frequently Asked Questions About the US-South Korea Energy Pact

• South Korean Trade Minister Kim Jung-kwan stated on October 1, 2026, that no formal contract had been signed for the Alaska LNG project, noting that Washington’s definite claims went beyond the three points actually agreed upon in the bilateral fact sheet, according to Antara News.
• The enhanced oil recovery project announced by Trump on October 2, 2026, amounts to $8.4 billion and uses carbon dioxide injection to extract remaining crude oil from mature fields, as reported by Kontan.
• Project Star is a 22,3 miliar dolar joint initiative announced on October 1, 2026, to build a gas-fired power plant in Encinal, Texas, to supply electricity directly to artificial intelligence data centers by 2032, according to the official portal of the Republic of Korea.