Mu-hyup "US Trump Re-election May Consider IRA Withdrawal... Negative Impact on Han Companies"

Republican Party and Trump Trade Policy Pledge Report
US Deepens Economic Decoupling with China
Concerns Over South Korea's Inclusion in 'Normal Trade Relations' List

In the upcoming U.S. presidential election this November, if former President Donald Trump succeeds in regaining power, it is expected that economic 'decoupling' with China will intensify, ushering in a new phase for global economic security.

Former U.S. President Donald Trump [Image source=Yonhap News]

On the 30th, the Korea International Trade Association (KITA) released a report titled "Key Contents and Implications of the Republican Party and Trump's Trade Policy Pledges." KITA analyzed Trump's re-election pledge "Agenda 47" and the conservative Heritage Foundation's "Project 2025" to anticipate Trump's future policies. The Project 2025 report is a plan devised to reorganize the U.S. federal government should the Republican Party win this year's presidential election. Over 50 conservative organizations and around 360 experts participated.

KITA predicted that if Trump returns to power, the Biden administration's climate and energy policies will be repealed or relaxed, and policies to enhance energy security and supply will be expanded. In fact, former President Trump and the Republican Party focus on domestic energy security and supply by expanding the use of oil and natural gas and easing regulations, rather than strategies to address the climate crisis. They are also considering withdrawing green subsidies such as those under the Inflation Reduction Act (IRA), which KITA argues will inevitably have a negative impact on Korean companies that have made significant investments in the U.S. since the IRA's enactment.

Under the "America First" doctrine, economic decoupling from China is also expected to deepen. The U.S. is anticipated to expand tariff policies such as universal tariffs and reciprocal trade laws to protect its economy and industries, while strengthening regulations against China. Furthermore, since the Trump camp has identified automobiles and auto parts from South Korea, Japan, Europe, Mexico, and Canada as causes of the U.S. trade deficit, South Korea may also be included among the countries subject to universal tariffs.

KITA emphasized, "Although the candidates from both major U.S. parties have not yet been finalized in this early election phase, it is necessary to review and prepare for trade-related election pledges given former President Trump's high approval ratings." They added, "The Heritage Foundation's report is important because former President Trump actively embraced 64% of the policy recommendations from the '2016 report,' allowing us to gauge his future policies."

This content was produced with the assistance of AI translation services.