“Trump’s tariffs make no distinction between friend and foe, and Korea is no exception. “

As US President Donald Trump announced that he would impose high-intensity tariffs on Mexico, Canada, and China on his first day in office, the Korea Economic Association and the Peterson Institute for International Economics (PIIE), an American think tank, seeking solutions for survival in Korea.

The Korean Economic Cooperation and PIIE held a conference on the 26th at the FKI Tower in Yeouido, Seoul with the theme ‘Trump’s second term and the solution to Korea’s survival.’

PIIE Senior Research Fellow Jeffrey Short said, “The second Trump administration’s tariff policy will not distinguish between friends and foes,” and added, “It could affect Korea despite the Korea Free Trade Agreement- USA (FTA).

Mexico and Canada, where President-elect Trump announced a 25% tariff, have signed a tariff exemption agreement (USMCA) with the United States. Senior Research Associate Short advised, “It would help Korea if Korea and the United States proposed ‘winner’ business cooperation items in areas where the two countries’ interests are linked, such as automobiles, semiconductors, defense industry, and shipbuilding. .” He stressed that Korea should take the lead in maintaining the ‘rules-based trade order’ by joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and its ‘ strengthening cooperation with the Association of Southeast Asian Nations (ASEAN) and the European Union. (EU).

The Director of PIIE, Adam Posen, said, “We need to distinguish whether President Trump’s promise is just a threat or whether it will actually be implemented, in terms of the tariff policy, it is mainly aimed at China and Mexico , and it is very likely that it will be used as a bargaining tool for other expected countries. He said, “In the ‘Trump 2.0’ era, Korea needs a strategy to enter ‘Fortress America’ by expanding direct investment in the United States and strengthening economic cooperation.” He advised, “We also need to diversify into markets other than the US and China.”

Lee Tae-gyu, a senior researcher at the Korea Economic Research Institute, said, “Korea has a competitive advantage, so we need to strengthen cooperation between the two countries in areas such as defense, shipbuilding and nuclear energy, where is it difficult. to replace the US supply chain, while developing supply chain strategies tailored for each industry.”

On foreign and security policy, PIIE Senior Research Fellow Cullen Hendrix said, “Emphasis on cost-sharing for defense spending, including US troops in Korea, is a risk, but demand is greater more for weapons in the North Atlantic Treaty Organization (NATO) and the Middle East Can be an opportunity for Korean defense companies “Yes,” he said.

Martin Chorzempa, a senior researcher at PIIE, predicted that “US export controls and technology regulations to China will have a negative impact on Korean companies entering the Chinese market, including semiconductors.” “

Yeon Won-ho, head of Hyundai Motor Group’s Global Economic Security Office, said, “Unlike the United States, which is seeking to disengage with China, or the EU, which is seeking to remove risk, no there are many options to choose Korea. ,” says, “Driven by the government “The two pillars of a strong business policy and strengthening partnerships with countries that have important values,” he suggested.