Speaking at a Cabinet meeting on July 9, Trump said, “South Korea is making a lot of money… they should be paying for their own military.” The remarks came just one day after his administration issued a letter warning of 25% tariffs on South Korean and Japanese imports starting in August, effectively extending the timeline for negotiations.

Trump’s demand echoes his first term, when he pushed Seoul to dramatically raise its annual payment for U.S. military presence. The two countries ultimately signed a five-year cost-sharing agreement last year, under which South Korea will contribute 1.52 trillion won ($1.1 billion) in 2026—an 8.3% increase from 2025.

Defense Tensions Rise as North Korea-Russia Ties Deepen

Trump’s renewed push comes amid growing concerns over North Korea’s military alignment with Russia. U.S. officials believe Pyongyang has benefited from Russian support in advancing its missile and nuclear programs.

With 28,500 U.S. troops stationed in South Korea, the presence remains a cornerstone of regional deterrence. But Trump has repeatedly questioned why the U.S. should bear most of the financial burden.

NATO allies recently agreed to raise defense spending to 5% of GDP, prompting calls for similar moves in Asia. South Korea currently allocates 2.32% of its GDP to defense, according to its Defense Ministry. In response to Trump’s comments, Seoul reaffirmed its commitment to the bilateral agreement and a “stable defense posture.”