[Choi Junyoung's World+] The Changed America and a New Era for the Korea-U.S. Alliance

Since President Trump took office, many people have asked, "Why is America like this?" The recent image of the United States feels unfamiliar and even frightening. For a long time, the United States, as a superpower, possessed immense strength, but exercised restraint, looked after its allies and others, and was willing to compromise some of its own interests. Since World War II, the United States has taken responsibility for global security and maintained a trade and international settlement system based on the dollar. It believed that lowering tariffs and removing trade barriers to increase trade was beneficial for everyone, and to put this ideology into practice, it opened its market to the world.

The United States preferred systems based on laws and order agreed upon by all, rather than unilateral decisions and power of a superpower. It sought to resolve issues through dialogue and compromise via various international organizations. People from all over the world flocked to the United States to realize their full potential, and those who achieved their dreams praised the American Dream. Of course, there were times when the United States, relying on its power, acted arrogantly and imposed its unilateral views, and sometimes resorted to military invasion or pressure. However, from a historical perspective, it is true that the United States has shown a more rational and moderate attitude compared to previous superpowers.

Why, then, has America changed so drastically since Trump took office? It would be shortsighted to attribute this shift solely to a particular politician. The United States is a democracy. Politicians respond to the will and sentiments of the voters, and it is the voters who drive changes in America. Many Americans feel uneasy about the current state of the country. Rather than reflecting the will of the people, a small group of individuals, colluding with politicians, seem to be running the country as they please.

The federal government is becoming increasingly complex, and although people are unsure what it actually does, news that the interest on national debt has surpassed defense spending is making Americans anxious. Stable jobs continue to disappear, and local communities-the foundation of daily life-are in decline. Voters who sensed something was wrong asked politicians what the problems were and how they would be fixed, but politicians dodged or ignored these questions.

But Trump was different. He pointed to the unfair practices of foreign countries, especially China, as the root cause of voters' anxieties and promised to solve these problems himself. Trump was a politician who explained what voters wanted in plain language and stated simply but clearly how he would address these issues, earning the support of the electorate.

The challenge facing President Trump is worth 2 trillion dollars. Every year, the U.S. federal government collects 5 trillion dollars in taxes but spends 7 trillion dollars, resulting in a 2 trillion dollar deficit that continues to accumulate. Like other countries, the United States has historically increased government debt during wars and reduced it after wars ended. However, even though the U.S. is not currently engaged in a major war, government debt is soaring. This is because the government continues to roll over debt by issuing new Treasury bonds. Many countries and financial institutions around the world, trusting in the superpower status of the United States, have eagerly purchased these bonds. However, as the outstanding balance of U.S. Treasury bonds has reached 35 trillion dollars-exceeding the U.S. GDP of 27 trillion dollars-concerns are growing. As demand for U.S. Treasuries has declined, interest rates have risen.

President Trump's solutions are fourfold. First, he seeks to increase tax revenue through tariffs and demands market opening. The tariffs imposed under the name of "reciprocal tariffs" have brought significant revenue to the U.S. government. In June 2025, before tariff agreements with major countries were finalized, tariff revenue reached 28 billion dollars, a threefold increase compared to the same month in 2024.

Second, he aims to reduce the burden of interest on government debt by lowering interest rates. Persistent pressure on Jerome Powell, Chair of the Federal Reserve, has increased the likelihood of a rate cut in September. Third, he seeks to reduce federal government spending. By increasing the defense cost-sharing contributions of allied countries, the U.S. can decrease its own defense expenditures. Fourth, he aims to expand investment in the U.S. by foreign companies. As more foreign companies invest in the U.S. to avoid tariff burdens, the taxes they pay increase. Although Trump has often appeared impulsive and unpredictable during his seven months in office, his overall approach boils down to these four solutions.

What President Trump will demand from South Korea is clear. While a 15% tariff has been agreed upon, further demands for market opening are certain. For South Korea, which has already opened almost all of its markets to the United States, what remains are agricultural, livestock, and fisheries products. Demands to reduce the U.S. burden by cutting U.S. Forces Korea and to increase South Korea's share of defense costs will naturally follow. Investment by Korean companies in the United States will also become more of an obligation than a choice. In order to profit in the U.S. market, companies will be told to establish operations in the United States and hire American workers. The United States refers to this as "modernizing the alliance."

From our perspective, the best strategy is to use previously announced large-scale investments in the United States as a shield to either reject or selectively accept U.S. demands, but the U.S. stance will be firm. The belief that issues can be resolved through reasonable give-and-take, as in the past, is no longer valid. The United States has changed.

The transformation of our key ally, the United States, is forcing significant changes upon us. Pressure to expand tariffs and investment in the U.S. will bring fundamental changes to our economy and industrial structure. The opening of the agricultural market will have similar effects. Employment and investment are also likely to occur in the United States rather than in Korea. In this changed environment, we must fundamentally consider how to adapt and what we must do to protect our interests. Simply trying to endure until the end of Trump's term is dangerous. Looking back at how the United States changed after President Reagan took office in the 1980s, it is unlikely that the U.S. will return to the past after Trump leaves office. The changed America is unfamiliar and intimidating. However, we must recognize that this is the true nature of America and work to build a new relationship.

Choi Junyoung, Senior Expert Advisor, Yulchon LLC (Global Law & Policy)