Trump's Trade War and Response Strategy

1. Perspectives on Trump's Trade War

Former U.S. President Donald Trump’s trade war had a profound impact on global trade. During his tenure, the U.S. imposed high tariffs on major trading partners, including China, Canada, and Mexico, in an effort to reduce trade imbalances and protect domestic industries. These measures significantly altered the international trade landscape, and their effects continue to be felt today.  

Recently, Trump’s trade policies have regained attention. On February 4, 2025, he announced new high tariffs on Chinese imports, reigniting trade tensions between the two nations. While these measures are intended to protect U.S. manufacturing and reduce trade deficits, concerns have arisen that they may disrupt global supply chains. 

Trump’s tariff policies extend beyond mere trade measures; they have complex implications for international politics and economics. For instance, tariffs on Canada and Mexico led to the renegotiation of the North American Free Trade Agreement (NAFTA), which was later replaced by the United States-Mexico-Canada Agreement (USMCA). This transition reshaped North America’s trade structure.  

Additionally, the trade war with China highlighted issues such as technology transfers, intellectual property rights, and government subsidies. These tensions heightened conflicts between the two countries and negatively impacted global economic growth. Tariff impositions forced businesses on both sides to restructure supply chains, leading to increased production costs and higher consumer prices.  

The latest tariff impositions must be understood in this broader context. While Trump’s new trade policies may offer short-term protection for some U.S. industries, they pose challenges to global trade norms and multilateralism in the long run. Unilateral actions of this nature may provoke retaliatory tariffs from other countries, escalating into a full-scale global trade war.  

Experts continue to analyze the impact of these policies on the global economy. While some economists argue that tariffs help protect domestic jobs and reduce trade deficits, others warn that they disrupt supply chains, raise consumer prices, and ultimately hinder global economic growth.  

In conclusion, Trump’s trade war is not just a trade dispute but a significant issue with far-reaching political and economic consequences. Monitoring policy developments and analyzing their global effects from multiple perspectives is crucial. This approach will enable the international community to mitigate trade conflicts and ensure stable global economic growth.  

 

2. Korea’s Response Strategy

As the possibility of Trump’s trade war reigniting increases, South Korea must develop proactive response strategies. 

• Diversifying Export Markets: To reduce reliance on U.S. exports, Korea should expand into emerging markets such as Southeast Asia, Europe, and India. 
• Maximizing Trade Agreements: Korea should actively utilize the Korea-U.S. Free Trade Agreement (KORUS FTA) and pursue additional free trade agreements (FTAs) to minimize tariff impacts. 
• Strengthening Technological Independence: Enhancing competitiveness in key industries such as semiconductors and batteries is essential for technological self-sufficiency. 
• Balancing Trade Diplomacy: While maintaining strong diplomatic ties with the U.S., Korea should also strengthen multilateral cooperation to establish a balanced trade strategy. 
• Risk Management & Corporate Support: The government and businesses should collaborate to build a trade risk management system and expand customized support measures. 

By implementing these strategies, Korea can flexibly respond to changes in the global trade environment and minimize economic shocks. If managed strategically, this trade war could be transformed into an opportunity for Korea’s economic growth.