Trade Leverage Strains U.S.-South Korea Alliance

Reduced U.S. intelligence cooperation is making it harder for Seoul to respond to North Korea’s growing nuclear arsenal, while disputes over investment, trade and confidential information spill into the military alliance. South Korea’s top envoy to Washington, Kang Kyung-wha, told lawmakers Monday, October 12, that there were “limitations in our communication with the White House.” “I find it somewhat frustrating,” she said.

The friction extends beyond military intelligence. Washington has accused South Korea of delaying its investment deal and discriminating against American-listed e-commerce company Coupang. Those disputes have strengthened President Donald Trump’s threat of new trade penalties. The report gave no figures on the investment deal or Coupang’s financial performance.

Trade and Security Leverage

Reports earlier in 2026 said a South Korean official disclosed U.S. intelligence about a secret North Korean nuclear facility. South Korean President Lee Jae Myung rejected the allegations as “absurd.” In June, local media reported that Washington asked to exclude South Korea’s spy agency from a trilateral U.S.-Japan meeting on North Korea.

A prominent South Korean politician canceled a U.S. trip that month after reports said his visa was held up. Trump also scaled back military drills with South Korea. No sign indicated that the United States planned to withdraw any of its 28,000 troops stationed on the Korean peninsula ahead of schedule, but reduced intelligence sharing has left Seoul with less information as North Korea increases missile tests.

North Korea can produce as many as 20 nuclear weapons a year. It has declared South Korea its “principal enemy.” Trump has floated restarting talks with Kim Jong Un. Victor Cha, Korea chair at the Center for Strategic and International Studies, said the intelligence restrictions conveyed that “the U.S. does not have trust in Korea as an ally.” He said the dispute was serious because “it hits at the heart of the military alliance.”

Investment Disputes and State Policy

Lee publicly questioned Washington’s description of Seoul’s participation in a liquefied natural gas project in Alaska, saying cooperation depended on the deal being financially viable. Trump’s complaints that South Korea had not done more to help with Iran, along with unfulfilled U.S. promises to assist Seoul with nuclear-powered submarines, further soured relations.

Bloomberg Economics’ Adam Farrar said Trump was pushing the Alaska LNG project as he sought to bolster Republicans ahead of the midterms, while Lee had incentives to push back as he faced weak approval ratings. Farrar linked the investment dispute to domestic political pressure in both countries. The government statements and negotiations described here concern investment, tariffs and security commitments. The report provided no account of workers or organized labor in those disputes.

Diplomacy Under Pressure

Lee met Trump briefly in New York last month on the sidelines of the United Nations General Assembly and sought help restarting dialogue with North Korea. “President Trump kindly reminded me of our plan to play golf,” Lee said after the 30-minute meeting. South Korea later set up a task force to prepare for a golf outing between the two men before the Group of 20 summit in December, Yonhap News reported.

Lee told his cabinet that South Korea, “as a sovereign nation,” should “avoid a submissive or overly deferential approach in relations with other countries.” His government has called its approach “pragmatic diplomacy,” seeking warmer relations with China while keeping close ties with the United States. The official at South Korea’s presidential office said the government was working to strengthen trust and called the alliance the cornerstone of Seoul’s foreign and security policy.

Former Vice President Kamala Harris criticized Trump in Seoul on Wednesday, October 14, for undermining the alliance by cutting drills and using tariffs to threaten partner nations. “America must be strategic in the use of our economic power, not reckless or spiteful,” she said. She called for renewing the U.S. commitment to South Korea. The State Department declined to comment, the White House didn’t respond to a request for comment, and South Korea’s National Intelligence Service didn’t respond to calls.