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In South Korea, Trump’s pricing threats place us a love story under pressure | Donald Trump

Seoul, South Korea – When Sideny Sim had the chance to visit the United States on business several years ago, it was the realization of a life dream.

Like many South Koreans, SIM has long admired the United States as a cultural mastodon and a positive force in the world.

These days, SIM, a 38-year-old engineer living near Seoul, does not feel such love towards the country.

While US President Donald Trump threatens to impose a 25% rate on South Korea from August 1, SIM cannot help but feel betrayed.

“If they were a country known to be a leader in culture, the economy and the perception of being” good “, I have the impression that the United States is now a threat to geopolitical balance,” Sim Jazeera told Al Jazeera.

South Korea and the United States share deep and lasting ties.

South Korea is one of the closest allies of Washington in Asia, welcoming around 28,000 American soldiers as a bulwark against North Korea.

The United States is home to a larger South Korean diaspora than any other country.

But with the return of Trump’s “America First” agenda to Washington, DC, these links are under pressure.

In a Pew Research Center survey published earlier this month, 61% of South Koreans expressed a favorable vision of the United States, compared to 77% in 2024.

Like dozens of other American trade partners, South Korea is faced with serious economic disruptions if it cannot conclude a trade agreement with the Trump administration by the deadline of August.

The Asian country, which is a large producer of electronics, ships and cars, generates more than 40% of its gross domestic product (GDP) of exports.

In addition to sending a letter to the South Korean President Lee Jae-Myung describing his pricing threats, Trump earlier this month also said that Seoul pays “very little” to support the presence of the Korea US forces (USFK).

Trump’s comments have strengthened speculation that he could demand that the South Korean government increases its national defense expenses or its contributions to the costs of the USFK.

After Trump, last week, told journalists that South Korea “wanted to conclude an agreement at the moment,” said the best commercial envoy of Seoul that an agreement “in principle” was possible by the deadline.

With the clock that turns on an agreement, the uncertainty created by Trump’s trade policies has aroused resentment among many South Koreans.

Kim Hyunju, a customer service agent working in Seoul, said that his business is not directly affected by the prices, Trump’s commercial salvas did not seem fair.

“It would not be fair that if they agreed so that we raised our prices at the same level,” said Kim to Al Jazeera, adding that the actions of the Trump administration had made him feel animosity towards the United States.

“I can’t help but see the United States as a powerful nation that responds to its interests with money and power games,” said Kim.

“I have always considered the United States as a friendly ally which is special for us, especially in terms of national defense. I know that it is good for us to maintain this friendly status, but I have somehow lost faith when Trump also demanded a greater amount of money for the American military presence in our country. ”

Kim Hyun-Ju says that Trump policies have made him feel animosity towards the United States [Courtesy of Kim Hyun-ju]

Kim Chang-Chul, an investment strategist in Seoul, expressed a more optimistic vision of Trump’s trade policies, even by recognizing the damage they could make to South Korean companies.

“American tariff policy is a burden on our government and our companies, but this decision really shows the depth of American decision -making and strategy,” Kim told Al Jazeera.

“Trump wants South Korea to be more involved in the energy ambitions of the United States in Alaska. This is part of the United States to put pressure on geopolitical realignment and economic rebalancing.”

Earlier this year, the United States had talks with South Korean officials to stimulate American liquefied natural gas exports (LNG) to South Korea, a large importer of LNG.

Keum Hye-Yoon, a researcher at the Institute of Korea in International Economic Policy (KIEP), said that it was difficult for an American ally like South Korea to give meaning to the comments and actions of Trump.

“When Trump quotes” equity “in his pricing policy, it is based on unilateral expectations to improve the American trade balance or restore economic force to certain industries,” Keum told Al Jazeera.

“While allies like South Korea share the supply chains of the United States and work in close collaboration with its companies, without taking these structures into account and imposing high taxes will probably create charges on American companies and consumers.”

While Trump’s most serious prices have not yet entered into force, South Korean manufacturers have already reported disruption.

Exports from South Korea fell 2.2% in the first 20 days of July compared to a year earlier, according to preliminary data published Monday by Korea Customs Service.

Kim Sung-Hyeok, head of research at the Korean Work Institute of the Confederation of Unions (KCTU), said that exporters of the automotive, steel, semiconductors and pharmaceutical sectors had been particularly affected.

“While exports in these areas have decreased considerably since pricing announcements, production orders in national factories have decreased,” Kim told Al Jazeera.

“Some automotive and steel production lines have temporarily closed, while other manufacturing sites have completely closed. Voluntary resignations and redeployments have become endemic in some of these workplaces. ”

Kim said small businesses can deal with the weight of prices because they are not able to “move their manufacturing factories to the United States”, or “diversify their commercial avenues outside the United States”.

“And as large companies are faced with a general drop in exports, these small businesses will therefore be faced with a shortage in products delivery of products that will cause disputes,” he said.

exports
Export vehicles in a port of Pyeongtaek, southwest of Seoul, July 8, 2025 [Anthony Wallace/AFP]

The Korea Development Institute estimated in May that the number of South Koreans employed would increase by only 90,000 this year, partly due to economic uncertainty, against an increase of 160,000 last year.

Even before Trump’s arrival on the political scene, American-Korean relations went through difficult periods in the past.

In 2002, two South Korean girls at the average school were killed when they were hit by an armored vehicle in the US military.

After the American soldiers involved in the incident were declared not guilty of homicide by negligence by an American military court, the country has seen an explosion of anti-American feeling and demonstrations on a national scale.

In 2008, national demonstrations took place after the South Korean government decided to continue importing American beef despite concerns about the risk of crazy cows disease.

More recently, President Lee, who was elected in June, stressed the importance of maintaining positive relations with China, the greatest strategic and competitor of Washington.

The KIEP KIEP said that the American-Korean American relationship has evolved into a partnership where the United States has become an “conditional ally”, where “economic interests have priority on the traditional alliance”.

“The United States is increasingly demanding South Korea to cooperate in its China containment strategy among its other socio-economic policies,” she said.

Keum said South Korea will have to seek alternative markets and diversify its exports to alleviate the spinoffs of Trump’s agenda.

“South Korea also does not need to act alone. The country can seek joint action with countries such as EU members, Japan and Canada to find joint answers to the current situation, “she said.

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