The global market is in chaos due to Trump's tariffs.


The chaos in the global market caused by the arbitrary imposition of tariffs of tens of percent on each country as they please is further increasing the uncertainty of the future as well as the trust in the United States.

For the United States to negotiate in its own interest, regardless of whether it is an ally or friend. As tariffs are imposed as a preemptive measure, the damage suffered by each country is increasing significantly.

For our country, which relies on exports, this is becoming an even more serious and urgent preemptive task that must be resolved quickly.

Excessive tariffs on individual items are being imposed on us, who are based on heavy chemical industries such as steel, aluminum, copper, and finished automobiles, and the general tariff is also scheduled to increase by 15% from the current 10% starting August 1, so there is very little time left for negotiations.

It can be said that they are making things more difficult by pushing too hard, such as mentioning that the defense budget should be increased tenfold from the current level in order to further raise the negotiation conditions.

In countries such as Japan, where negotiations continued without any results and finally reached an agreement after eight rounds of talks, and Brazil, where negotiations are still ongoing, dissatisfaction with the US's excessive push-pull strategy is growing.

There is a lot of talk about the need to reexamine and reevaluate the United States and take various measures due to its foreign policies, including Trump's tariff policy, which has raised suspicions.

This trend has occurred just six months since Trump took office as US President. As Trump blatantly emphasizes America First over blood alliances, it is time to make a cool-headed judgment and decision on strengthening cooperation with the United States in various areas, including military, national defense, and economy.

The cold-blooded flow of the international community and, in particular, the drastic changes in the existing foreign policy of the United States, which had played the role of the world's policeman, have great implications for us.

This means that now is the most important time to thoroughly and coolly analyze and decide on an issue.

In particular, the Trump tariff issue is an issue that needs to be resolved more quickly for us, who rely on exports.

First, since the imposition of tariffs on some items became a reality in May, the burden and deficit structure on our companies have been increasing.

In particular, the difficulties are worsening in the case of finished cars and automobile parts, which form the backbone of our national economy, and must be resolved quickly.

Although ministerial meetings are held frequently between South Korea and the U.S., there has been no summit meeting yet. As the governments still have trust in each other, a highly credible South Korea-U.S. summit should be held within a month or two, and a perfect solution structure in the form of a comprehensive package deal should be implemented.

Maximizing the advantages we can put forward, such as the issue of ships and warships, the Alaska LNG project, wartime operational control including defense spending, and the opening of some American agricultural products such as beef and apples, as well as providing clear countermeasures and persuasion for Trump's unreasonable demands, will also be key tasks.

It can be said that we should actively utilize the example of Japan, which recently reached an agreement after eight rounds of negotiations.

In addition to astronomical US investments, Japan is opening up even the most sensitive items in the country, such as rice, and is reducing tariffs on automobiles from 25% to 1%, along with investments in Alaska LNG projects.We succeeded in lowering it to 5%.

It is the only country with a trade surplus with the United States that also has the lowest tariffs.

This is something we must actively refer to.

In particular, no matter how good the conditions are, Trump's strategy of offering even greater conditions significantly increases the amount of worry as it makes us think hard about which strategy is the best.

Second, the advantages of the Korea-US FTA are highlighted.

There are not many countries in the global market that have signed FTAs with the United States.

It is very difficult to facilitate a free trade agreement because the United States imposes so many conditions.

The United States is a country that is so difficult that even Europe and Japan do not have FTAs with the United States.

The idea is that we should actively utilize the FTA between Korea and a country that is going through such difficult times.

It is emphasized that while South Korea is the country that is thoroughly abiding by the agreement through the current Korea-US FTA, the United States is the country that is thoroughly violating it by imposing tariffs of 10-50% on individual items under Trump.

Furthermore, it is necessary to emphasize that the person who revised the Korea-US FTA during the first term of Trump's administration was none other than Trump.

Even if the government changes, the agreement is an agreement between countries that must be kept, and even if a problem arises, it must be revised through the agreement. However, this process is being completely ignored and tariffs are being unilaterally imposed.

We must emphasize these parts and thoroughly highlight that we must also receive concessions from the United States.

Third, Trump's tariffs are a cost that should be borne primarily by governments, not by companies.am.

Trump's tariffs, he said, are meant to fill the White House coffers with the money that governments around the world have plundered.

Of course, it can be said that it is a completely ignorant, country-first policy that ignores international customs and regulations, but at present, it is our absolute position that we must avoid the rain.

Therefore, the central government and local governments should bear the financial burden related to Trump tariffs on items exported to the United States.

Since this is not a normal tariff imposition, the government should first temporarily bear the related costs and quickly conclude a package deal through the Korea-US summit.

A significant portion of the supplementary budget currently in progress should be supported to clearly reduce the burden on companies exporting to the U.S.

Moreover, the automobile industry is a complex and integrated ecosystem with various subcontractors, and the ecosystem is extensive. Therefore, if the ecosystem collapses once, it will be serious and impossible to rebuild. Therefore, it is important to build a safe and secure ecosystem.

I hope that the government recognizes the seriousness of the current issue and provides solid support. With the Hyundai Motor Group, which is running a deficit, and GM Korea, which is rumored to be withdrawing, all facing increasing difficulties, the resolution of current issues is becoming an increasingly important issue.

The fourth is the post-Trump prediction.

The focus is on immediate issues at present, but it is predicted that this similar trend will not completely change even if another US president takes office after Trump.

The trend of prioritizing one's own country and expanding to Europe and other countries is expected to grow further in the future.

This is because, for us who secure food through exports based on FTA and WTO, this is an area that will be of even greater concern in the future.

It is highly likely that Trump will continue to lead the way in the future by ignoring the global market with negative roles and unreasonable tariff policies, and by thoroughly shifting the focus to the United States.

Therefore, there are many things to worry about, such as excessive exports to the United States and dependence on national defense.

Currently, it is essential to diversify overseas exports and reduce dependence on the United States, as well as to thoroughly implement independent national defense, improve and support the domestic environment that is conducive to business, and a solid budget for research and development expenses is also needed. It is a time when various alternatives are absolutely necessary both domestically and internationally, such as smooth labor-management relations.

Furthermore, in the current situation where time is limited, if we can secure a single-digit number of 8-9% for reciprocal tariffs on automobiles and other items through concentrated efforts and an early Korea-US summit, it will remain the best negotiation.

In the case of the UK, which first signed an agreement with the US, Trump declared that he would not lower the tariff rate to less than 10% with any country, while deciding on a 10% tariff on automobiles and other items. However, considering Trump's tendency to change depending on the situation, genuine persuasion will be important.

The next few weeks This will be the most important period.