Washington: The major trade and defense deal between the United States and South Korea announced by President Donald Trump has been delayed due to disagreements over the details of a proposed nuclear powered submarine project.

The agreement, first revealed in late October, was meant to boost trade and strengthen defense cooperation between Washington and Seoul. Under the plan, South Korea would invest around 350 billion dollars in projects across the United States in exchange for reduced U.S. tariffs on Korean goods. Alongside economic cooperation, the deal included a significant defense element allowing South Korea to develop its own nuclear powered submarine with U.S. assistance.

However, officials from both countries say the deal has not yet been finalized because of complications surrounding the submarine plan. The key issue lies in how and where the submarine will be built and what kind of nuclear fuel it will use. South Korea has requested U.S. approval to use American supplied nuclear fuel for its domestically built submarine, but Washington’s defense and energy departments are still reviewing the proposal due to the sensitivity of nuclear technology transfers.

President Trump had earlier said the submarine could be built at a U.S. shipyard in Philadelphia, but South Korean officials prefer to build it domestically. This difference has caused further delays in finalizing the agreement.

Experts say the deal could mark a major shift in U.S. policy, as only a few allies such as Australia have received access to nuclear propulsion technology under the AUKUS pact. Critics warn that sharing such technology could raise concerns over nuclear proliferation and regional stability, especially as tensions grow with China and North Korea.

Despite the challenges, both governments have expressed commitment to moving forward. South Korea’s presidential office said the negotiations are ongoing and that the project reflects the strong alliance between the two nations. The White House has not provided a date for when a formal agreement will be signed.

Analysts believe that the outcome of the submarine talks could determine the future of broader U.S. security cooperation in Asia. Until the final details are agreed upon, the trade and investment parts of the deal also remain on hold.

The delay highlights the growing complexity of balancing economic partnership with advanced military technology sharing between the two allies.