The face of the ‘America First’ policy

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The face of the ‘America First’ policy

Published: 02 Apr. 2025, 00:00

Audio report: written by reporters, read by AI

From left, Korean Minister of Foreign Affairs Cho Tae-yul, Deputy Prime Minister and Finance Minister Choi Sang-mok, Hyundai Motor Group Executive Chair Euisun Chung, Samsung Electronics Executive Chairman Lee Jae-yong, Acting President Han Duck-soo, SK Group Chairman Chey Tae-won, LG Group Chairman Koo Kwang-mo, Korea's Minister of Trade, Industry and Energy Ahn Duk-geun, National Security Adviser Shin Won-sik and Sung Tae-yoon, the director of national policy at the presidential office, take a photo ahead of their task force meeting to discuss countermeasures to combat tariffs ordered by U.S. President Donald Trump at the prime minister’s office in central Seoul on April 1. [JOINT PRESS CORPS]

The United States Trade Representative (USTR)’s 2025 National Trade Estimate Report on Foreign Trade Barriers (NTE report), released ahead of U.S. President Donald Trump’s announcement on reciprocal tariffs, signals that the impending tariff war will be anything but mild. The U.S. will announce country-specific tariff imposition plans on April 2, under the principle of reciprocity largely based on this report. While Trump calls this day “America’s Liberation Day,” for its trade partners, it marks the beginning of an era of chaos and uncertainty.

The report identifies various “trade barriers” concerning South Korea, ranging from automobile emission regulations to drug pricing policies. Many of these issues have been longstanding U.S. grievances, but new concerns — such as offset defense trade — have been raised for the first time. Offset defense trade refers to a transaction in which a country purchasing foreign weapons, military supplies, or services worth over $10 million secures technology transfers, local production, or export opportunities as a counterbalancing measure. Prohibiting even the request for technology transfers is, in itself, an unfair demand.

The restriction on the age of imported U.S. beef was established through a bilateral agreement in 2008. While the U.S. argues that maintaining this transitional measure for 16 years is excessive, South Korea must clearly explain that lifting the restriction on beef older than 30 months could actually diminish consumer preference in Korea, the largest export market for U.S. beef. Similarly, policies concerning network usage fees and online platform regulations should be assessed in a balanced manner, considering the regulatory disparities between domestic and foreign businesses. The U.S. must restrain its tendency to label any unfavorable measure as a trade barrier under the guise of its “America First” policy. However, in cases where even Korean companies criticize excessive domestic regulations — such as certain chemical management laws — proactive reform could be beneficial both for deregulation efforts and bilateral negotiations with the United States.

U.S. President Donald Trump prepares to sign an executive order related to the U.S. live entertainment ticketing industry in the Oval Office at the White House in Washington, D.C., March 31. [REUTERS/YONHAP]

This is a period of heightened domestic and international uncertainty for Korea. Acting President Han Duck-soo convened the first meeting of the economic security strategy task force on Tuesday with the leaders of Korea’s four major conglomerates — Samsung’s Lee Jae-yong, SK’s Chey Tae-won, Hyundai Motor’s Euisun Chung and LG’s Koo Kwang-mo — declaring that “the government will urgently devise support measures.”

On the same day, Han also vetoed the commercial law amendment, acknowledging the business community’s concerns that it could undermine corporate competitiveness. As he noted, minimizing the impact of impending reciprocal tariffs will require a unified response from the government, businesses and the public through a robust public-private partnership. The nation’s leading conglomerates, along with the broader corporate sector, must demonstrate bold innovation and resilience in the face of these challenges.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.