U.S. President Donald Trump said on July 8 (local time) that “South Korea should be paying for their military,” just a day after announcing a 25 percent reciprocal tariff on South Korean products starting next month. The move is seen as a pressure tactic targeting Seoul to increase its financial contribution to the U.S. Forces Korea (USFK) and expand its overall defense spending. Some analysts view this as an attempt to link tariffs, trade, and security into a “one-stop shopping” strategy aimed at the South Korean government, which is hoping to hold a summit with the U.S.
Speaking to reporters during a cabinet meeting at the White House, Trump said, "We rebuilt South Korea. We stayed there. It's okay. We rebuilt it.” He added, "And we stayed there, and they pay us very little for the military." This was a renewed push to raise Korea’s share of USFK-related expenses. He also said, “They should be paying for their military,” suggesting that Seoul should boost its national defense spending. The U.S. has signaled its intention to apply the same defense spending standard it imposed on NATO allies, which is 5 percent of GDP, to allies in the Indo-Pacific as well.
Referring to past defense cost-sharing talks with South Korea during his first term, Trump claimed, "I said for South Korea as an example, you know, we give you free military, essentially very little, and I think you should pay us US$10 billion a year.” He added, "And they went crazy, but they agreed to three. So I got three with a phone call. I was satisfied.” During Trump’s presidency in 2019, the 10th Special Measures Agreement (SMA) between South Korea and the U.S. stipulated that Seoul would contribute about 1.039 trillion won for one year.
Trump has often exaggerated the size of USFK. On this day, he once again falsely claimed there are 45,000 U.S. troops stationed in South Korea (the actual figure is about 28,500). Since his presidential campaign last year, Trump has labeled South Korea a “money machine,” demanding $10 billion in defense cost-sharing.
His renewed push for defense payments came just one day after South Korea and Japan were named as initial targets for a unilateral tariff hike, suggesting an escalation of pressure in the final stages of negotiations with Seoul. It raises the possibility that national security issues, including defense cost-sharing, could become bargaining chips in broader tariff discussions.
Observers note that the South Korean government now faces a diplomatic test. With Seoul having officially expressed interest in holding a summit with Washington, it is suddenly confronted with an all-encompassing “bill” covering trade deficits, tariff barriers, defense contributions, and military spending, spanning both economic and security fronts.