[US Tariff Season 2] Turning Risk Into Opportunity: Leveraging Korea's Strengths in Semiconductors and Nuclear Power for Tangible Gains

'Reciprocal Negotiations' Needed Beyond Simple Acceptance
"Position Korea as a 'Cooperative Partner' for U.S. Manufacturing Revival"
Calls for Multilateral Alliances, Including CPTPP Accession

The possibility remains that the United States, under the administration of President Donald Trump, may once again raise global tariff risks, including pursuing an increase in global tariffs to 15%. Experts agree that the Korean government and companies should shift their response paradigm from a defensive posture to a perspective of 'cooperative partnership.'

Kim Jungkwan, Minister of Trade, Industry and Energy, who visited the United States to discuss trade issues including tariffs, returned to Korea through Incheon International Airport Terminal 2 on the 8th of last month and is answering questions from reporters. Photo by Yonhap News Agency

Experts emphasized that rather than merely striving to prevent the imposition of tariffs, Korea should move toward 'reciprocal negotiations' that demand concrete benefits from the United States. Given that Korea has demonstrated good faith through measures such as enacting a special law on investment in the U.S. and relaxing regulations on network usage fees, they argued that Korea should confidently demand specific advantages from the U.S. as well, such as tariff refunds, cooperation in building nuclear submarines, and resolving visa issues.

Kim Taehwang, a professor in the Department of International Trade at Myongji University, stated, "We should not set the defense of the 15% tariff level—as in previous years—as our ultimate goal," and recommended, "Given the changed political circumstances surrounding President Trump, such as declining approval ratings and the midterm elections, we should aim for more favorable conditions and raise the level of negotiations accordingly."

Experts noted that President Trump's primary interests are 'attracting investment into the United States' and 'reviving the manufacturing sector.' They suggested that Korea should actively promote the indispensability of Korean semiconductors, steel, and power equipment as the U.S. pursues projects such as artificial intelligence (AI) data centers and new nuclear power plants, turning this into an opportunity to expand economic benefits.

Kim Kyunghan, a research fellow at POSCO Research Institute, explained, "In a situation where the U.S. seeks a stable supply chain decoupled from China, there is no country other than Korea that simultaneously possesses capabilities in semiconductors, batteries, nuclear power plant construction, and power infrastructure," adding, "We should emphasize that Korea is the only country that can replace China and thereby facilitate more active local entry and collaborative projects by Korean companies."

Regarding supply chain diversification, a realistic 'two-track strategy' was proposed as an alternative. Kim pointed out, "In preparation for the U.S. strengthening rules of origin, such as the review of the U.S.–Mexico–Canada Agreement (USMCA), we need to thoroughly examine the removal of Chinese intermediates, while also logically persuading the U.S. in areas where technological or economic constraints make such changes unavoidable."

The need for a proactive governmental role in diversifying export markets was also mentioned. Heo Jung, professor in the Department of Economics at Sogang University, stressed, "Since companies prioritize profit-seeking and cost reduction, voluntary diversification is difficult to expect," and added, "Even if it presents short-term challenges, the government must take the lead in diversifying export markets to mitigate the long-term impact of tariff risks."

From a diplomatic perspective, the necessity of expanding cooperation with Japan and forming a 'buffer zone' through joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was also highlighted. Professor Kim advised, "Rather than confronting the U.S. alone as we do now, we must create avenues for cooperation with Japan by joining CPTPP and raise our international voice through alliances with the EU and others, so as to gain leverage when dealing with either the U.S. or China."

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