South Korea seeks investment, trade deals to counter U.S. tariffs
South Korea must bring strong “bargaining chips” to the negotiation table with the United States, such as increased corporate investments in the U.S. and enhanced cooperation in key strategic industries. These measures could help minimize the impact of Washington’s “America First” trade policies and potential tariff hikes, trade experts in Seoul emphasized on Friday.
“It’s totally business,” said Bark Tae-ho, president of the Commerce Institute of Lee & Ko and former trade minister of South Korea. Speaking to Yonhap News Agency, he highlighted the importance of a strategic approach in negotiations with the U.S. regarding its recent tariff plans.
“Trump is a person who likes transactions … and there are a lot of gifts Seoul can provide in a package deal, such as more corporate investment in the U.S., cooperation in the shipbuilding industry, and imports of U.S. energy,” Bark said.
Concerns over U.S. tariff hikes
This week, U.S. President Donald Trump announced plans to impose a 25% tariff on all steel and aluminum imports, along with country-specific reciprocal tariffs targeting major trade partners. This has raised concerns in South Korea, as key industries could be significantly affected.
In 2024, South Korea recorded a trade surplus of $55.7 billion with the U.S. Additionally, South Korea was the fourth-largest exporter of steel and aluminum products to the U.S. last year, according to the U.S. International Trade Administration.
To mitigate these concerns, South Korea’s Deputy Minister of Trade, Park Jong-won, will 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 set to visit the U.S. to strengthen bilateral economic cooperation with political and business leaders.
Strengthening trade ties in strategic industries
“South Korea is one of the most important trade partners for the U.S. across various industries, from semiconductors and batteries to shipbuilding and energy,” said Austin Chang, president of the Institute for International Trade under the Korea International Trade Association (KITA).
Chang emphasized that positioning South Korea as a reliable alternative to China in the global supply chain could work in Seoul’s favor. “If we can persuade the U.S. that South Korea can create synergy with Washington in strategic industries such as defense, biopharmaceuticals, and semiconductors, we may be able to reduce the impact of U.S. tariffs on our industries,” he added.
Shipbuilding cooperation, in particular, could serve as a strong negotiation tool. Trump has previously expressed interest in working with South Korean shipyards, particularly in naval shipbuilding, repair, and maintenance.
With the U.S. planning to increase energy imports under the Trump administration, the demand for shipbuilding is expected to rise. South Korea, a global leader in the shipbuilding sector alongside China, could leverage this expertise in its negotiations.
