U.S.-Korea Trade Pact at Risk Amid Semiconductor Supply Chain Disruptions

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2025-09-29 16:49:01

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The $350 billion trade agreement between the U.S. and South Korea faces mounting jeopardy as tariff tensions escalate. Seoul's National Security Adviser has publicly rejected Washington's demand for a $350 billion cash payment, calling it untenable. The standoff places global semiconductor supply chains in peril, with South Korea caught in the crossfire of the U.S.-China chip war.

Chinese retaliation accelerates as Beijing hosts Eurasian leaders at the Shanghai Cooperation Organization summit, signaling its expanding geopolitical ambitions. U.S. Secretary of State Marco Rubio's characterization of the global order as "obsolete" has further inflamed tensions, prompting calculated countermeasures from China that extend beyond traditional tariff disputes.

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