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| Donald Trump was elected as the 47th President of the United States on November 5 (local time), marking the return of his administration, which will officially begin on January 20 next year. |
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| In the federal congressional elections held alongside the presidential election, the Republican Party regained its majority in the Senate for the first time in four years. This outcome is expected to provide the incoming Trump administration with greater leverage to advance its policy agenda by utilizing congressional support. |
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| During his campaign, President-elect Trump, under the slogan of “Make American Great Again,” pledged to (i) contain China; (ii) reinforce tariff barriers; (iii) return to fossil fuels; and (iv) revisit the US’s roles in the Russo-Ukrainian War and Middle East conflicts. These pledges are expected to bring about significant changes in Korea’s trade with the US, global value chains, and international relations. |
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| Notably, the potential implementation of a 10% universal tariff or reciprocal tariffs on all US trade partners, the possible reduction or repeal of IRA subsidies, an anticipated decline in oil prices driven by a return to fossil fuels, and policy shifts affecting the electric vehicles (EVs) market are expected to have profound impacts on Korea’s economy and industries, thus calling for proactive and strategic responses. |
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| In light of these developments, Yulchon LLC has identified four key policy areas of the Trump administration that are most relevant to Korean businesses: (i) securing an advantage in hegemonic competition through China containment; (ii) trade pressure and protectionist measures; (iii) returns to fossil fuels, and (iv) policies targeting adversarial nations. We have analyzed the significance and feasibility of these policy areas and summarized their potential implications for Korean industries and businesses. |
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