As the date for the announcement of country-specific tariffs, as predicted by U.S. President Donald Trump, approaches in about 10 days, domestic corporations are appealing their local investment histories to minimize the effects of tariffs. South Korea, which has the 8th largest trade surplus with the U.S., is increasingly likely to be subject to tariffs.
According to foreign media on the 23rd, threats from President Trump and U.S. administration officials regarding 'reciprocal tariffs' continue to escalate. The possibility of exemptions based on contributions to the U.S. economy by countries or corporations is also being discussed.
On the 21st (local time), President Trump said, 'Many people are asking me if they can receive exemptions, but if I grant one to one person, I have to grant it to everyone,' dismissing the possibility of tariff exemptions.
However, he also mentioned the fact that he accepted the American automotive industry's request to suspend tariffs on the automotive sector regarding Mexico and Canada, adding that 'flexibility is an important word.' This suggests that he hinted at the possibility of adjusting tariffs to some extent, considering the impacts on the U.S. economy.
Domestic corporations are actively appealing their contributions to the U.S. economy, aiming to capitalize on this possibility. A representative example is the 'tripartite cooperation enhancement agreement' that Korean Air signed with Boeing and GE Aerospace on the 21st. Under this agreement, Korean Air agreed to purchase aircraft and engines worth a total of $32.7 billion (about 48 trillion won) from Boeing and GE Aerospace.
In attendance were Cho Won-tae, chairman of Hanjin Group; Kelly Ortberg, president and CEO of Boeing; Russell Stokes, CEO of GE Aerospace; and Howard Rutnik, U.S. Secretary of Commerce, along with Ahn Duk-geun, Minister of Trade, Industry and Energy.
The 'Hyundai Motor Group Metaplant America' (HMGMA) groundbreaking ceremony that Hyundai Motor Group is set to hold on the 26th in Georgia is expected to be an opportunity to announce large-scale investments by Korean corporations in the U.S. Notable executives from the group, including Chairman Chung Euisun, Vice Chairman Zhang Jae-hoon, and President José Munoz, are anticipated to attend.
Earlier, the White House mentioned Hyundai Motor Group four times as a representative example of local investments resulting from tariffs and trade policies. On the 2nd of last month, the White House noted, 'The CEO of Hyundai Motor stated that investments in the U.S. are the best antidote to potential tariffs, promoting a newly constructed plant in Georgia worth $13 billion (about 19 trillion won).'