In the first half of this year, South Korea achieved its highest-ever trade surplus with the United States, driven by robust auto exports. This surplus reached $28.7 billion, a substantial increase of 55.1 percent compared to the same period last year. The trade balance with the US has been consistently positive, with the automotive sector as the main contributor, recording exports of $19 billion to the US, marking a 28.9 percent increase from the previous year. However, concerns arise over the potential impact of the "America First" policies, with the possibility of a second Trump administration imposing a 10 percent universal tariff on all imports, which could significantly affect Korean exports to the US. The growth in Korea's US trade surplus is attributed to various factors, including the enhanced competitiveness of leading exports such as vehicles, supply chain realignment due to the US-China trade war, and the Biden administration's initiatives to strengthen domestic supply chains and promote clean energy. Nevertheless, the outlook for Korean businesses is uncertain, given the potential implementation of new tariffs and the stance of a second Trump administration on the auto industry and electric vehicles. Hyundai Motor Group is making preparations to adapt to these potential changes, including revising its manufacturing strategy at its new auto plant in Georgia to accommodate hybrid vehicles as well as electric vehicles. Analysts suggest that such adjustments could help mitigate the impact of policy changes and enable the company to respond effectively in the short to mid-term.
In the first half of this year, South Korea achieved its highest-ever trade surplus with the United States, driven by robust auto exports. This surplus reached $28.7 billion, a substantial increase of 55.1 percent compared to the same period last year. The trade balance with the US has been consistently positive, with the automotive sector as the main contributor, recording exports of $19 billion to the US, marking a 28.9 percent increase from the previous year. However, concerns arise over the potential impact of the "America First" policies, with the possibility of a second Trump administration imposing a 10 percent universal tariff on all imports, which could significantly affect Korean exports to the US. The growth in Korea's US trade surplus is attributed to various factors, including the enhanced competitiveness of leading exports such as vehicles, supply chain realignment due to the US-China trade war, and the Biden administration's initiatives to strengthen domestic supply chains and promote clean energy. Nevertheless, the outlook for Korean businesses is uncertain, given the potential implementation of new tariffs and the stance of a second Trump administration on the auto industry and electric vehicles. Hyundai Motor Group is making preparations to adapt to these potential changes, including revising its manufacturing strategy at its new auto plant in Georgia to accommodate hybrid vehicles as well as electric vehicles. Analysts suggest that such adjustments could help mitigate the impact of policy changes and enable the company to respond effectively in the short to mid-term.