Trump threatens to tie defense costs to trade terms with key allies in Asia

© Reuters

Investing.com -- President Donald Trump is signaling a shift in how the United States engages with its key military allies in Asia, suggesting that troop deployments in Japan and South Korea may become bargaining chips in ongoing trade negotiations, Reuters reported today.

In a series of posts on Truth Social, Trump said defense cost-sharing will be part of "one-stop shopping" negotiations with Seoul and raised similar concerns during a visit by Japanese officials to Washington this week.

The move appears to blur the long-standing separation between security cooperation and economic policy—a shift that is unsettling U.S. allies in the region. According to estimates, Japan hosts roughly 50,000 U.S. troops, while South Korea is home to about 28,500.

More importantly, both nations rely heavily on the U.S. defense umbrella amid regional threats from China, Russia, and North Korea. This is not the first time that Trump warned he could withdraw American forces if allies don’t pay more for their presence.

Japan insists that defense spending should not be tied to tariffs. “These originally are separate issues,” a Japanese official told Reuters.

South Korea renegotiated its SMA a year early in 2023 to secure more favorable terms under the Biden administration. That agreement raised South Korea’s contribution to $1.47 billion annually, with future increases tied to inflation.

Similar to Europe, calls are rising in Seoul for the country to explore its own nuclear deterrent, reflecting concerns over the long-term reliability of U.S. security guarantees.