S. Korea should seek diversified, balanced diplomacy
Acting President and Prime Minister Han Duck-soo, who returned to work after 87 days following an impeachment vote against him, said he would strongly address the global trade challenges posed by U.S.-initiated tariff disputes. A seasoned trade expert and former ambassador to the United States, Han stressed: "I will pour all my wisdom and capabilities into securing our national interests amid the trade war." The reciprocal tariffs threatened by U.S. President Donald Trump will be imposed on April 2, which he has referred to as "Liberation Day" for the U.S. economy. Korea will be acutely impacted by these reciprocal tariffs.
Since March 12, Korea has been facing a 25 percent duty on its steel exports due to Trump's tariffs. The Wall Street Journal reported on March 23 that "the Trump administration is focusing on applying tariffs to about 15 percent of nations with persistent trade imbalances with the U.S. — a so-called 'Dirty 15,' as Treasury Secretary Scott Bessent put it last week." The targeted nations are expected to be similar to those listed in the U.S. Trade Representative's Federal Register notice released last month, including China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea and Canada.
With about a week to go until April 2, the government needs to brace for a worst-case scenario while preparing counteroffers to soften the blow from Washington. First and foremost, Han should get on the phone with Trump. Choi Sang-mok, as deputy prime minister and finance minister who stepped in while Han was facing his impeachment trial, was unable to make contact. Given the time constraints, both the government and the private sector are taking action. Trade Minister Ahn Duk-geun met with Alaska Gov. Mike Dunleavy, during which Dunleavy requested South Korea's investment. Hyundai Motor also announced a $21 billion investment in the U.S. over the next four years. Additionally, Korea holds leverage in the shipbuilding industry, which the United States needs.
Trump has already inaccurately claimed that Korea's tariffs are four times higher than those of the U.S., suggesting a high likelihood that the Korea-U.S. Free Trade Agreement could be renegotiated. He also threatened to scrap the CHIPS and Science Act, which provides subsidies to foreign semiconductor companies such as Samsung Electronics and SK hynix for their investments in the U.S. In his efforts to exert pressure, Trump has also suggested that trade issues could be linked to the military alliance between South Korea and the U.S. The latest pressure from Washington is the potential restructuring of U.S. troops stationed worldwide, possibly even including in Korea.
What is required now is not only deft and skillful diplomatic engagement but diversification of trading partners as well. Against this backdrop, a trilateral meeting between the foreign ministers of Korea, Japan and China was held on Saturday in Tokyo, as the three nations face tariff pressures from the Trump administration, with China likely to gain more through cooperation with Korea and Japan. In the often-contentious relationship between the three countries, Foreign Minister Cho Tae-yul met with his Japanese and Chinese counterparts. Cho stated that all three nations affirmed that maintaining peace and stability on the Korean Peninsula is in their shared interest.
Economically, Korea is China's second-largest trading partner nation. However, the interests of South Korea, Japan and China differ when it comes to North Korea, despite last Saturday's meeting. Territorial tensions, such as China's construction of an unauthorized steel structure in the South Korea-China Provisional Measures Zone in the West Sea have emerged. Territorial and historical issues linger regarding ties with Japan. The global reality compels Korea to achieve diversified and balanced diplomacy in Asia as well.
English (United States) ·