Trump Sticks to Tariff Protectionism Principle... Industry on Alert

As U.S. President Donald Trump postponed the tariff order measures he had announced on his first day in office, the domestic industry is cautiously relieved.

However, since President Trump has maintained protectionist principles by ordering the establishment of a foreign import agency to collect taxes from overseas companies and investigating trade deficits and unfair trade practices of trading partners, the industry remains alert to possible additional measures.

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On the 21st, Kim Jeong-hoe, Vice Chairman of the Korea Semiconductor Industry Association, said, "We expected measures such as tariffs on the first day, especially against China and other countries, but the signed content did not include such measures." He added, "From the perspective of establishing an agency called the foreign import agency, it seems that the tariff option is not entirely excluded, and there is still a strong possibility that tariffs will be used as a policy tool."

A senior business official who requested anonymity said, "Trump's inaugural speech felt somewhat different from his first term. It seemed more cautious," adding, "It looks like things will be handled carefully one by one rather than changing abruptly. We also need to respond calmly."

The automobile industry, which has been tense about the imposition of universal tariffs, responded that it is still too early to feel relieved. An industry insider said, "President Trump has strategically changed his words at any time, so we need to watch closely," and added, "Since policies are expected to be concretized within the first month of his inauguration, we are monitoring the situation carefully."

The steel industry is also keeping in mind the possibility of announcements regarding the scope, extent, and measures of tariffs in the future. An industry official said, "It does not seem to be the stage to hastily say 'easing' or 'strengthening,'" emphasizing continuous monitoring. A steel company executive also stated, "We are internally reviewing various scenarios to respond confidentially according to future policies."

The shipbuilding industry is hopeful about benefiting from LNG carriers in response to President Trump's remarks about expanding drilling. A shipbuilding industry official said, "He mentioned the 'world's strongest military' in the defense sector, which suggests a restoration of naval power, and Korea, a strong ally, may find opportunities in new shipbuilding," adding, "Although there are restrictions such as domestic construction requirements, it is an opportunity for Korea to secure orders."

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