Between Giants: South Korean Moment For A Balanced Foreign Policy

2025-04-22 03:21:47

(MENAFN- Asia Times) South Korea is heading into a crucial round of trade talks with the United States in Washington on April 24. These negotiations come at a time of mounting pressure from both Washington and Beijing, and the choices Korea makes now will significantly shape its future economic and strategic trajectory.

The United States is urging South Korea to align more closely with its broader efforts to counter China. Washington is seeking cooperation on a number of fronts – export controls, investment restrictions and supply chain restructuring – all aimed at curbing Beijing's technological and economic influence. But this is no longer just about trade. It is a turning point for Seoul, a moment to decide whether to follow the US lead, assert its autonomy or take a more calibrated path – a multi-alignment strategy.

What the US wants

At the heart of US demands is the question of tariffs. The Trump administration has imposed 25% reciprocal tariffs on major Korean exports, especially automobiles and steel. Though the tariffs were suspended for 90 days, Korea is pressing for permanent removal to reduce economic uncertainty for its manufacturers.

The imbalance in bilateral trade is another core issue. The US trade deficit with Korea reached $55.7 billion in 2024, prompting Washington to call for greater imports of American goods, particularly energy products like liquefied natural gas. In response, Korea is proposing broader cooperation in strategic sectors, such as shipbuilding and participation in major US infrastructure projects, including the Alaska gas pipeline – offering mutual economic and geopolitical benefits.

Semiconductors are a major point of contention. With the US reportedly considering new tariffs on Korean chips, Seoul has already unveiled a 33 trillion won ($23 billion) support package to reinforce its semiconductor industry. This reflects Korea's desire to remain a global tech leader while bracing for possible shocks from US trade policy.

Although not officially on the agenda, the sensitive issue of defense cost-sharing may also surface in the talks. While South Korean officials insist this is unrelated to trade, there is speculation that Washington may raise it, potentially complicating the tone of the negotiations.

Perhaps the most complex issue is Korea's economic relationship with China. The US is expected to pressure Seoul to reduce its dependency on Chinese trade and align with Washington's export controls that target exports of advanced technology to Beijing.

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