By James Kim
As President Donald Trump began his second term, his administration is swiftly implementing new economic policies, particularly in tariffs. Aimed at reshaping global trade dynamics, these measures present both challenges and opportunities for U.S.-Korea economic cooperation. Against this backdrop, AMCHAM’s recent engagements in Washington, D.C. — first for President Trump’s inauguration and later alongside a delegation led by the Korea Chamber of Commerce and Industry —provided a key platform to reinforce Korea’s role as a strategic economic partner to the U.S. and address concerns surrounding trade policies.
Strengthening U.S.-Korea economic collaboration has never been more critical. Trade and investment flows between the two countries have reached record levels, with Korean companies ranking among the largest foreign investors in the U.S., particularly in strategic sectors such as semiconductors, electric vehicles and battery manufacturing. However, the Trump administration’s renewed focus on reducing trade deficits and prioritizing domestic industry raises important questions about the future of bilateral trade relations.
One of the most pressing concerns for Korean businesses is the potential imposition of additional tariffs, particularly on key export sectors such as automobiles, steel and consumer electronics. The Trump administration’s recent decision to increase tariffs on Mexican and Canadian goods has heightened concerns that similar measures could be extended to Korea. This uncertainty underscores the need for proactive engagement with U.S. policymakers to mitigate risks and ensure that Korean businesses are not disproportionately affected.
Moreover, trade policies under Trump’s second term appear to be driven by strategic objectives beyond simple trade balance adjustments. Industries deemed essential to U.S. national security, such as shipbuilding, semiconductors and clean energy, are being prioritized for greater collaboration. Korean firms operating in these sectors must align their investment strategies with U.S. industrial policy to maintain their competitive edge. There should be a focus on fostering industry-to-industry collaboration, facilitating technology exchange and strengthening supply chain resilience. This approach benefits both economies and enhances global competitiveness.
Korea’s growing investment footprint in the U.S. has played a pivotal role in deepening bilateral economic ties. Over the past three years, Korean investments have generated billions of dollars in economic impact and supported thousands of American jobs. The U.S. has recognized these significant contributions, and AMCHAM has been working tirelessly to ensure that these investments are not only protected but also expanded under the new administration.
Recently, AMCHAM launched the “Buy America” campaign to encourage the purchase of American products such as energy, automobiles, beef and nuts, and help reduce the trade deficit. By deepening industry ties between the U.S. and Korea, this initiative aims to further strengthen balanced trade, drive job creation and promote lasting economic cooperation. The campaign underscores a commitment to fostering a balanced and mutually beneficial economic relationship. By supporting businesses in navigating regulatory requirements and expanding local production, this campaign will serve as a catalyst for Korean firms seeking deeper integration into the U.S. economy.
AMCHAM also conveyed a clear message in discussions with key U.S. policymakers, including Secretary of Commerce Howard Lutnick: Korea is not merely a trade partner but a critical contributor to America’s industrial ecosystem, and as the administration refines trade policies, it is crucial to maintain a welcoming and supportive environment for Korean investments. AMCHAM strongly advocates for policies that ensure trade stability by minimizing abrupt policy shifts and fostering transparent regulatory discussions. Expanding investment incentives is also critical — incentives such as fast-track approvals, which are awarded to large-scale investments, should be extended to small and medium-sized enterprises to diversify investment opportunities.
Aligning industrial policies between the two nations is essential, particularly as geopolitical tensions increase. Ensuring that U.S. and Korean businesses coordinate their industrial strategies will strengthen supply chain resilience and technological cooperation. Furthermore, reducing nontariff barriers is just as important as addressing tariffs. Beyond tariffs, regulatory requirements and compliance costs should be streamlined to facilitate smoother business operations.
The U.S.-Korea economic alliance is at a critical juncture. While new tariff policies may pose challenges, they also present opportunities to redefine economic cooperation in a way that aligns with the evolving global trade environment. As a bridge between the two countries, AMCHAM remains committed to advocating for policies that support bilateral trade and investment, ensuring that Korea continues to be a key partner in America’s economic strategy. As we prepare for future engagements, including the 2025 APEC summit in Gyeongju, it is imperative to reinforce the strategic importance of Korea in the Indo-Pacific region. A strong, resilient and forward-looking economic partnership between the U.S. and Korea will not only benefit both economies but also set a precedent for global trade cooperation in an era of increasing uncertainty.
James Kim is the chairman and CEO of AMCHAM Korea.
English (United States) ·