Getty Images Bank “Are you interested? no. The key is sanctions and export controls. “Already the biggest task at a Washington law firm is export control.” (A lawyer at a law firm in Washington, DC)
The launch of Donald Trump’s second administration is imminent. Trump is already predicting a tariff war. They announced that they would impose a 25% tariff on Mexican and Canadian products and an additional 10% tariff on Chinese products.
However, Cho Eui-jun, CEO of Sanction Lab, a sanctions consulting firm, points out that what is more scary for companies than the apparent tariffs are the U.S. government’s sanctions and export controls. Trump is calling for tariffs externally, but in reality, sanctions and export controls are the key means of restraining countries that challenge the United States, such as China and Russia, and it is difficult for even friendly countries to avoid sanctions if they do business with them incorrectly.
Representative Cho worked as a Washington correspondent for the Chosun Ilbo from December 2016 to February 2021, and fully observed the first four years of Trump’s administration. Since then, we have recently published a compilation of sanctions-related data collected over the past seven years.
According to Representative Cho, the emergence of President Trump symbolizes fundamental changes in the United States. America was tired of constant war after World War II. This is the background of the American people’s enthusiasm for Trump, who calls for ‘Make America Great Again’ but says, “I will not become the world’s policeman.” The strategy adopted by the United States to strengthen its hegemony without shedding blood is the sanctions war.
The sanctions war began in earnest during Trump’s first term. The number of sanctions, which was about 2,300 during the eight years of the Barack Obama administration immediately before Trump, reached about 3,900 during the four years of Trump’s first term. Since then, under the Joe Biden administration, sanctions have exploded to about 6,000 in the aftermath of the war in Ukraine. This trend is likely to continue in Trump’s second term.
The United States’ sanctions and export control methods are so persistent that they can be called obsession. Indiana University issued an export ban on sending toxin-producing genetically modified fruit flies to 16 overseas universities, effectively preventing overseas exchange. In one case, a defense company employee was fined $200 million in Russia for opening a company laptop containing confidential information.
In April this year, the United States doubled the statute of limitations for sanctions violations from five to 10 years. This is to monitor and detect sanctions violations for a longer period of time. A senior U.S. official said, “The sanctions list is always in our hands. “When to use this is a political decision,” he said. The United States is preparing to attack any country, whether an enemy or an ally, at any time if it disobeys its instructions.
The author says, “Under the second Trump administration, the front lines of the global sanctions war will become more diverse and the aspects more intense.” The war for semiconductor supremacy is only part of the global sanctions war. New regulations are coming that affect almost all industries, including automobiles, AI (artificial intelligence), bio, cryptocurrency, fintech, fashion, and seafood.
According to the author, Korea is not a safe zone either. In early 2024, Korean small and medium-sized businesses were also subject to sanctions by the U.S. Department of Commerce. An American company was sanctioned for sending helicopter parts worth 2 million won to Korea without permission. We don’t know when or how US sanctions will hit. Nevertheless, with the exception of some large corporations and banks, Korean companies are virtually defenseless.
No matter how hard a company tries to avoid sanctions, it is difficult to properly avoid sanctions if there are people who are determined to deceive them. America knows that well too. Therefore, the United States is said to be making it virtually mandatory for companies to create sanctions compliance programs or export compliance programs. If you have a relevant program in place and are well-trained to prevent sanctions violations, the fine will be reduced even if you are caught violating sanctions. It is worth a look for businessmen and public officials who will have to navigate the second Trump era.
Editorial Writer Joo Yong-seok
