Park Chong-hoon

U.S. President Donald Trump has ushered in a new era of economic nationalism, characterized by aggressive tariffs and protectionist measures. As of March 4, he has implemented a total 20 percent tariff on all imports from China, and we expect more stringent trade policies to be announced going forward. This shift in U.S. policy raises concerns for Korea — a U.S. ally — which is militarily dependent on the U.S. and has a substantial trade surplus with the U.S., exceeding $55 billion as of 2024. However, Korea's strategic importance, economic adaptability and the evolving global landscape should help it work through these challenges and reinforce its partnership with the U.S.

Korea has demonstrated resilience amid shifting U.S. trade policies. U.S. sanctions on China under Biden’s administration had led to global supply chain adjustments. Contrary to concerns, Korea's exports to the U.S. surged by 14.9 percent annually from 2020 to 2024, outpacing China’s 4.8 percent export growth. In 2024, Korean exports reached a record $683.8 billion, up 8.2 percent from 2023. The semiconductor sector, which was expected to take a hit due to U.S. controls on China, contributed $99 billion to the 2024 current account surplus, tripling its 2023 contribution. These figures underscore Korea’s ability to adapt and thrive amid global economic shifts.

Despite the challenges posed by Trump’s trade policies, we believe the U.S.-Korea alliance will remain strong. As the U.S. seeks to diversify its supply chain away from China, Korea’s leadership in........

© The Korea Times