Democratic Party "Trump Mutual Relations Suspension, Fortunate"... Expert "Public-Private Cooperation Needed for Negotiations with US"

The Democratic Party's Future Economic Growth Strategy Committee expressed on the 19th that it is "fortunate" that the United States granted a grace period regarding reciprocal relations. Experts emphasized the importance of a mid- to long-term approach in future negotiations with U.S. President Donald Trump.

On the same day, the committee held a 'Discussion on Domestic Impact and Response to U.S. Reciprocal Tariffs' at the National Assembly. Lee Eon-ju, the committee chair and a senior member of the Democratic Party, stated, "Under the acting authority system, I was worried that hasty tariff negotiations with the U.S. might lead to a conclusion where we suffer significant losses, but it is fortunate that a grace period has been granted."

At the discussion, Yeo Han-gu, senior researcher at the Peterson Institute for International Economics (former head of the Ministry of Trade, Industry and Energy's Trade Negotiations Headquarters), said, "The purpose of Trump's trade policy is to reduce the U.S. trade deficit, revive manufacturing in the Midwest, and win the U.S.-China hegemony competition," adding, "Trump's transactional deal-making, such as the pressure to sell TikTok, is likely to continue." Regarding future responses, Researcher Yeo emphasized, "Rather than reacting impulsively, it is important to focus on mid- to long-term trends by emphasizing the usefulness of the Korea-U.S. FTA, strengthening rules of origin, and managing supply chain diversification to form a relative competitive structure," adding, "We must 'gather and nurture' rather than survive individually." This means that public and private sectors must cooperate.

Joo Won, a research director at Hyundai Research Institute, predicted, "Although China's exports to the U.S. will inevitably be hit by the second U.S.-China tariff war, China's recent increased export share to emerging markets will play a buffering role." Regarding future repercussions, Director Joo said, "The oversupply in manufacturing caused by China's sluggish exports to the U.S. may trigger a dumping sales strategy of Chinese products in the Korean and global markets," adding, "It is necessary to verify whether the Chinese government will establish a China-centered global supply chain and whether this can be utilized to attract domestic investment."