BAE, KIM & LEE LLC held a seminar with the Korean Association of International Trade and Industry Studies to examine the likelihood of U.S. President Donald Trump restarting tariff policies and shifts in the international trade order. With additional U.S. tariffs and supply chain realignment moves becoming a reality, the event reviewed Korean corporations' U.S. investment strategies and ways to respond to U.S.-China trade disputes.
On the 10th, BAE, KIM & LEE LLC said it held a seminar the previous day at its headquarters in Jongno-gu, Seoul, under the theme "Trump tariff war season 2: Structuring uncertainty and the transition of the international trade order." Co-hosted by the firm's Trade Strategy Innovation Hub and the Korean Association of International Trade and Industry Studies, the event drew about 100 participants from business and academia.
In the first session, Choi Byung-il, head of BAE, KIM & LEE LLC's Trade Strategy Innovation Hub, explained the U.S. alternative tariff strategy. Choi said the United States has been running a so-called "Plan B" using Sections 122 and 301 of the Trade Act since the Supreme Court's ruling in February that reciprocal tariff measures were unlawful. He added, "There is a high possibility that new tariff and non-tariff measures will be introduced following the late-July Section 301 investigation results," and said, "It is a strategy to maintain a discriminatory tariff system while securing negotiating leverage."
Choi said the United States is crafting policy to reduce dependence on China and strengthen cooperation with allies as it reorganizes critical mineral supply chains. He said corporations should rebuild their supply chains from a "total expense minimization" perspective that reflects economic security risks, not just simple expense cuts. At the government level, he said Korea needs strategic choices such as reducing reliance on critical minerals and joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
In the second session, Kim Tae-hwang, a professor at Myongji University, explained Korea's U.S. investment strategy. Kim said strategic U.S.-bound investment may be a fiscal burden in the short term but can serve as a means to address tariff risks and secure supply chain stability. He added that Japan is rapidly pushing large-scale investment projects based on institutional flexibility without special separate laws, and said Korea also needs responses to reduce additional tariff burdens before the announcement of the U.S. Trade Act Section 301 investigation results.
In the third session, Kwon Dae-sik, chief representative of BAE, KIM & LEE LLC's Beijing office, outlined the course of the U.S.-China trade dispute. Kwon said that in response to the United States' tightened export controls and sanctions, China is also raising its response level by invoking the Anti-Foreign Sanctions Law and the Unreliable Entity List rules, and that for corporations with large China exposure, managing external messaging, securing on-the-ground information, and taking preemptive legal measures are crucial.
BAE, KIM & LEE LLC provides advice in international trade, tariff, international disputes, diplomacy, and finance through its Trade Strategy Innovation Hub.