“Trump 2.0 and the Debilitating, Discharging, and Devitalizing of Korean Companies”

In this Op-Ed, the Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) Dr. Jean-Marc F. Blanchard and Wong MNC Center Research Associate Antonia Urovsky evaluate the challenges faced by Korean businesses under a second Donald Trump administration. Major risks include the potential scaling back of the Inflation Reduction Act and CHIPS Act, both vital to Korean investment in the United States (US), especially in electric vehicles and semiconductors. Trump’s preference for tariffs and economic nationalism, a related focus on U.S.-based manufacturing, and expected pursuit of decoupling from China also will pressure Korean firms. Furthermore, there are uncertainties surrounding Washington’s stance towards the Korea-U.S. Free Trade Agreement (KORUS) under Trump 2.0. Institutionalized Korea-US collaboration, under bilateral and multilateral auspices, faces a cloudy future, too. To date, Korean companies have been adjusting their investment strategies and finding ways to improve their political position. They need to build smarter political ties, invest in sectors like critical minerals, infrastructure, and nuclear energy, prioritized by the administration, and diversify.

Jean-Marc F. Blanchard and Antonia Urovsky, “Trump 2.0 and the Debilitating, Discharging, and Devitalizing of Korean Companies,” The Diplomat, January 31, 2025 is available at https://thediplomat.com/2025/01/trump-2-0-and-the-debilitating-dischargi....

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