Democratic midterm gains may fuel fresh trade uncertainty for Korea

Democratic victories in the U.S. midterm elections could create fresh trade uncertainty for South Korea, according to experts. While the shift would not diminish President Donald Trump's tariff authority, it might complicate the execution of Seoul's investment pledges and spur him to escalate trade pressure. The $350 billion investment pact between Washington and Seoul is unlikely to be revoked, as broad-based support exists for boosting American manufacturing.

Nonetheless, the political consequences of the Republican loss could compel Trump to showcase accomplishments on his trade agenda, possibly exposing South Korea to renewed tariff threats, the experts warned. Jang Sang-sik, head of trade trend analysis at the Korea International Trade Association, noted that the tools for exerting tariff pressure remain unchanged, namely Section 232 and Section 301 of U.S. trade legislation, which grant the administration legal justification to impose tariffs.

Congress has largely entrusted these powers to the administration, enabling the executive branch to administer them.