South Korea is facing mounting challenges as US tariff threats escalate tensions between the two allies. Many South Koreans, once strong supporters of the US, now view Washington’s “America First” agenda as a direct threat. The strained relationship highlights growing unease about the future of political and economic cooperation.
The US administration has warned of a 25 percent tariff on South Korean exports, including cars, electronics, and steel. This decision could severely disrupt South Korea’s economy, which relies heavily on international trade. More than 40 percent of the country’s GDP comes from exports, leaving industries vulnerable to policy shifts.
South Korea’s government is working urgently to avoid economic fallout. Trade officials are exploring diplomatic channels to secure a deal before the looming deadline. However, uncertainty has already led to a 2.2 percent drop in exports during July’s first 20 days.
Labor groups report factory slowdowns and temporary closures in critical sectors. Automotive and steel production lines have paused operations, while smaller companies struggle to manage reduced orders. In addition, analysts warn that US tariff threats will disproportionately harm smaller businesses unable to shift production or find alternative markets.
Public sentiment towards the US has soured as economic concerns grow. A recent survey showed favorable views of the US dropping from 77 percent to 61 percent. Citizens criticize Washington’s demands for increased defense spending and trade concessions as undermining the decades-old alliance.
Some experts believe the US tariff threats reflect a broader geopolitical strategy. They argue Washington seeks to realign global supply chains and strengthen domestic industries. However, such policies risk alienating allies like South Korea and creating instability in global markets.
South Korean policymakers are now emphasizing diversification to reduce reliance on US trade. President Lee’s administration highlights the importance of balancing ties with China and other major economies. Diversification efforts could help shield the nation from future trade shocks and strengthen its economic independence.
The evolving US-South Korea relationship signals a shift from traditional alliances to transactional partnerships. Economic interests increasingly dominate political ties, challenging both countries to redefine cooperation. Nevertheless, South Korea’s response will shape its position in a changing geopolitical landscape.
