Corporate Investments and Strategic Industries: Essential Negotiation Tools for U.S. Tariffs
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Synopsis
South Korea aims to leverage investments and strategic partnerships to navigate U.S. tariffs and trade policies. Experts highlight the importance of presenting valuable assets to minimize economic impacts and enhance cooperation.
Key Takeaways
- South Korea should present "bargaining chips" during U.S. tariff discussions.
- Increased investments in the U.S. and industry cooperation can mitigate trade policy impacts.
- South Korea had a $55.7 billion trade surplus with the U.S. in 2024.
- A business delegation will discuss bilateral cooperation next week.
- Shipbuilding cooperation could be key in negotiations.
Seoul, Feb 14 (NationPress) South Korea must present "bargaining chips" at the negotiation table with the United States, including new investments within the U.S. and enhanced bilateral cooperation in key strategic industries, to mitigate the potential effects of "America First" trade policies and U.S. tariff increases, emphasized local trade experts on Friday.
According to Bark Tae-ho, president of the Commerce Institute of Lee & Ko and former South Korean trade minister, the government’s approach to U.S. tariff discussions should be strictly business. He stated to the Yonhap News Agency, "It's totally business."
Bark articulated that "Trump is a person who likes transactions..." suggesting that Seoul has numerous offerings for a comprehensive deal, such as increased corporate investments in the U.S., partnerships in the shipbuilding sector, and imports of U.S. energy resources.
This week, U.S. President Donald Trump declared his intention to impose a 25 percent tariff on all steel and aluminum imports, alongside country-specific reciprocal tariffs targeting major trade partners, raising alarms that significant South Korean industries could face direct repercussions.
In 2024, South Korea's trade surplus with the U.S. was recorded at $55.7 billion.
Last year, South Korea also ranked as the fourth-largest exporter of steel and aluminum products to the U.S., as per data from the U.S. International Trade Administration.
To tackle these issues, South Korea’s Deputy Minister of Trade Park Jong-won is set to visit Washington next week for discussions with officials from the U.S. Department of Commerce and the U.S. Trade Representative (USTR).
A business delegation led by SK Group Chairman Chey Tae-won is also expected to visit the U.S. next week to explore topics related to bilateral economic cooperation with both political and business figures.
Austin Chang, president of the institute for international trade under the Korea International Trade Association (KITA), remarked, "South Korea is one of the most important trade partners for the U.S. across various industries, from semiconductor and battery to shipbuilding and energy."
He added that if South Korea can convince the U.S. that it can serve as a substitute for China in the global supply chain and foster synergies with Washington in strategic sectors like defense, biopharmaceuticals, and semiconductors, it may lessen the impact on local industries from U.S. tariffs.
Chang highlighted that cooperation in shipbuilding could be a significant bargaining chip during negotiations, noting Trump's past interest in collaborating with South Korean shipyards, specifically in naval shipbuilding, repairs, and maintenance.
Moreover, the U.S. is expected to have a strong demand for shipbuilding, an area where South Korea and China currently lead, particularly as the Trump administration seeks to import more energy.
