“Trump will pursue strong trade policies within the first 100 days of his inauguration… “We must prepare for an increase in auto tariffs.”

On the 11th, the Korea Economic Association invited the former heads of the Trade Negotiation Headquarters at the FKI Tower in Yeouido, Seoul, and held a roundtable discussion on the topic, ‘Is the Korean economy ready for the new US government to launched?’

Yeo Han-gu, a senior researcher at the Peterson Institute for International Economics who served as head of the Central Office for Trade Negotiations in 2021 and 2022, said via video link from the US, “Despite expectations , President-elect Donald Trump won a landslide victory with a ‘red wave’ (Republican storm), so the second term is expected to increase. He said, “The second Trump administration is expected to try to realize the ‘America First‘ vision using trade policies such as tariffs as a key tool under the three main goals of reducing the trade deficit, re- the revival of the manufacturing industry, and the consolidation of a competitive edge over the hegemony of the United States and China. ” he said.

Researcher Yeo said, “There is a perception among the Democratic and Republican parties that auto tariff rates are too low,” and added, “I am concerned that Trump may take steps to raise tariffs in his second term.” He said, “Assuming that universal tariffs are advanced at a rate of 10%, we need to prepare a logic and special negotiations for Korea out to get an exception to the Extension Act in the first term “If you try , ideas may come to mind,” he advised.

Yoo Myung-hee, a professor at the Graduate School of International Studies at Seoul National University who was the head of the Central Office of Trade Negotiations from 2019 to 2021, explained his experience of participating in negotiations during his ‘ the first Trump administration, saying, “The measure by which the Trump administration judges bilateral relations is the trade deficit. “

Professor Yoo said, “However, for President-elect Trump, tariffs are both a means of resolving the trade balance deficit and leverage for negotiations,” adding, “If we negotiate to quickly and effectively despite unilateral US measures, tariffs will be free or our demands will be reflected.” “It’s a challenge and an opportunity for the Korean government’s negotiating team,” he said.

Park Tae-ho, head of the Central Office of Trade Negotiations from 2011 to 2013, and head of the Gwangjang International Trade Research Institute, said of the trade policy of the second Trump administration, “If universal tariffs are applied to Korea , (Korea) we will be subject to the bilateral tariffs of the Korea-US FTA (Free Trade Agreement).” “We need to make it clear that it goes against principle of elimination,” he said.

Director Park said, “If you look at the way the US implemented policies in the past, they designed policies in a complicated way and took delayed measures,” and he said, “We will 60% tax on China, but we will make many exceptions to other countries, he said.