Bloomberg: "If Trump Wins, South Korea Considers Expanding U.S. Energy Imports"

[US Election 2024]
"Preparing for Trump and Harris victories over several months"

Bloomberg reported on the 4th (local time) that South Korea is considering increasing imports of U.S.-made energy if former President Donald Trump wins the U.S. presidential election.

Bloomberg, citing anonymous sources, stated that the South Korean government has been preparing for the possibility of either former President Trump or Vice President Kamala Harris winning over the past few months, and that if Trump wins, it may urge companies to expand purchases of U.S.-made oil and gas.

Former U.S. President Donald Trump
[Photo by Reuters]

Bloomberg reported that South Korean government officials have held meetings with companies and research institutes over the past few weeks to discuss strategies following the U.S. election.

Bloomberg explained that the reason the South Korean government is considering this is due to the increasing trend of trade surpluses with the U.S. Currently, China ranks first and Mexico second among countries with large trade surpluses with the U.S. South Korea ranks eighth, having recorded a surplus of $51.4 billion last year.

If this trade trend continues after the start of a second Trump administration, the U.S. government is likely to demand improvements in the trade balance, in which case the South Korean government may request companies to expand purchases of U.S.-made energy.

Former President Trump has repeatedly pledged that if he returns to the White House, he will impose a minimum 10% tariff on all imports and a 60% tariff on imports from China.

Bloomberg reported that multiple sources said that just before Trump began his first term in 2017, the South Korean government urged domestic companies to diversify their crude oil suppliers. This time, with increased geopolitical risks in the Middle East, companies may be more inclined to turn to U.S.-made energy, the sources added.

South Korea, which relies on imports for the majority of its energy demand, imported 11% of its gas and 17% of its oil from the U.S. this year.

Bloomberg stated that the South Korean Ministry of Trade, Industry and Energy, SK Innovation, and GS Caltex did not respond to inquiries regarding this matter.