Trump’s ‘America First’ policies targeting South Korea, says acting president

South Korea Faces Dual Challenges: Trade Tensions with the U.S. and Internal Political Turmoil

Trade Tensions with the United States
South Korea is currently navigating a complex trade situation with the U.S. as President Trump’s "America First" policies begin to impact the country. Acting President Choi Sang-mok has highlighted that South Korea is now a target of these protectionist measures, primarily through the imposition of reciprocal tariffs set to take effect on April 2. These tariffs could potentially affect both economies, with South Korea engaging in discussions on issues such as energy cooperation and shipbuilding. Choi emphasized the need for careful diplomacy, instructing officials to communicate with the Trump administration to clarify tariff misunderstandings and seek a mutually beneficial agreement.

Implications for the Semiconductor Industry
Another significant concern is Trump’s intention to dismantle a bipartisan law providing subsidies for semiconductor manufacturing, which is crucial for South Korea’s economy, particularly for major companies like Samsung. The company previously received substantial funding from the U.S., and the removal of these subsidies could have detrimental effects on South Korea’s tech sector. This move by Trump may be part of a broader strategy to repatriate manufacturing industries to the U.S., potentially reshaping global supply chains.

Internal Political Crisis
Simultaneously, South Korea is grappling with internal political instability as the Constitutional Court prepares to rule on the impeachment of President Yoon Suk Yeol. Yoon’s brief imposition of martial law last year has sparked widespread protests, with both supporters and opponents taking to the streets. The government has vowed to handle any violent protests with severity, indicating a firm stance on maintaining public order. This tense political climate is exacerbated by concerns over potential violence, prompting police to prepare for worst-case scenarios.

Conclusion
In summary, South Korea is faced with the dual challenges of external trade pressures and internal political unrest. The government is striving to manage these issues with diplomacy and firmness, aiming to protect national interests while avoiding escalation. The interplay between these external and internal challenges underscores the complex landscape South Korea must navigate to ensure economic stability and social cohesion.