Dispatch a trade delegation to Trump

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Dispatch a trade delegation to Trump

The global trade war ignited by U.S. President Donald Trump is now in full swing. On Feb. 1, Trump signed an executive order imposing tariffs of 25 percent on Canada and Mexico and 10 percent on China. The new tariffs are set to take effect on Feb. 4. In response, the affected countries immediately announced retaliatory measures, including countervailing tariffs and complaints to the World Trade Organization (WTO).
 
The Canadian government vowed to impose a 25 percent retaliatory tariff on U.S. imports. Mexico, declaring that it would not sit idly by, unveiled a “Plan B” that includes both tariff and nontariff countermeasures. China also voiced its strong opposition to the move and warned of “corresponding counteractions.”
 
The intensification of U.S. protectionism was foreseen even before Trump’s second term officially began. The shock waves from this latest round of trade warfare, initiated just three weeks into Trump’s new administration, will inevitably shake the global economy.
 
Trump cites trade imbalances as the primary rationale for the tariffs. China, Mexico and Canada have consistently run massive trade surpluses with the United States. Additionally, Trump has linked the tariffs to concerns over illegal immigration and the flood of fentanyl and other narcotics across the U.S. border.
 
Despite mounting criticism from within the United States, Trump appears unlikely to back down from his aggressive stance. The Wall Street Journal condemned the move as “the most foolish trade war in history,” arguing that Trump’s economic offensive against not only China but also U.S. allies is entirely unjustifiable.
 
It remains difficult to predict the ultimate impact of this tariff war. Some observers have drawn comparisons to the Smoot-Hawley Tariff Act of 1930, which raised U.S. tariffs on over 20,000 imported goods to as high as 400 percent. The retaliatory tariffs imposed by more than 20 countries, including Britain, are believed to have accelerated the onset of the Great Depression.
 
However, the nature of trade has shifted significantly since then. While the 1930 tariff war revolved largely around agricultural goods, the current battlefield centers on high-tech industries and advanced manufacturing.
 
This is precisely where Korea finds itself trapped in an unpredictable storm. As a nation highly dependent on exports of high-tech manufactured goods, Korea faces increasing difficulty as the global trade war escalates. The free trade system that Korea has benefited from for decades is now under threat.
 
Adding to Korea’s woes, America, alarmed by the rise of China’s DeepSeek AI technology, appears poised to expand export restrictions to include low-end semiconductors bound for China. Washington is also considering tariffs on semiconductor chips to boost domestic production — a move that could further destabilize Korea’s semiconductor industry, the backbone of its economy.
 
Trade diplomacy is now more crucial than ever, yet the lack of strong political leadership is hindering Korea’s ability to respond effectively. However, some sectors — such as shipbuilding, where the United States seeks Korea’s expertise — could serve as strategic leverage in trade negotiations.
 
Acting President Choi Sang-mok must move swiftly to dispatch a high-level trade delegation to Washington to mitigate the economic shock waves stemming from these new tariffs. The National Assembly must also accelerate the passage of key corporate support laws, such as the Special Act on Semiconductors, to strengthen Korea’s economic resilience.
 
Translated using generative AI and edited by Korea JoongAng Daily staff.   
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