The Trump administration has been taking steps to turn China's dependence on U.S. aviation suppliers into leverage for trade negotiations, according to sources cited in a Reuters exclusive.

This strategy highlights the geopolitical significance of the aerospace supply chain. By targeting this critical dependency, the administration aims to strengthen its position in broader economic discussions with Beijing.

President Donald Trump unveiled an investment exceeding $50 billion from South Korea for a natural gas pipeline in Alaska. The initiative, part of a 2025 trade agreement, aims to link Alaska’s North Slope to a liquefied natural gas export terminal in southern Alaska.

Commerce Secretary Howard Lutnick confirmed the scale of the commitment, while Trump described the plans as one of the largest energy infrastructure investments in American history. The White House stated the project will decrease energy costs for Alaskans by ensuring a reliable and secure supply.

Project timeline and scope

The project entails an 807-mile natural gas pipeline. Construction is expected to span three years, with exports of liquefied natural gas starting two years after completion.

South Korean Trade and Industry Minister Kim Jung-kwan stated that Seoul is prioritizing project viability and national interests because the initiative involves taxpayers’ money. Both countries will assess the project’s commercial viability before deciding whether to move forward.

Broader US energy commitments

This announcement follows other major energy deals under the same trade framework. Earlier in September, South Korea and the U.S. reached an agreement on a Texas gas project worth around $22.3 billion. Known as "Project Star," this involves building a 6,472-MW gas-fired combined-cycle power plant to supply AI data centers.

Additionally, South Korea launched "Project Power," committing up to $120 billion to build eight U.S. nuclear reactors. This includes $100 billion for construction and $20 billion in contingency funding.

Investment structure and profit sharing

The investments are part of a broader $350 billion pledge by South Korea to secure better tariff terms. Under the trade deal, the U.S. lowered tariffs on South Korean imports to 15% from a threatened 25%. Seoul also committed to purchasing $100 billion in U.S. LNG and other energy products.

South Korean President Lee Jae Myung clarified that the LNG project and nuclear reactors must first be proven commercially viable. The profit split is structured as follows:

According to Nikkei Asia, the U.S. is entitled to 90% of the profit after Seoul recoups the investment. The White House did not immediately respond to requests for comments on specific project details.