In a revealing political manoeuvre, former President Donald Trump strategically leveraged his renegotiated trade agreement with South Korea to intensify pressure on China during his administration, according to recent analysis of his trade policy tactics.
The KORUS Renegotiation: More Than Meets the Eye
While publicly touted as a victory for American automotive and pharmaceutical industries, the revised KORUS (Korea-US Free Trade Agreement) served a dual purpose in Trump's broader economic strategy. The deal, which Trump frequently criticised as a "job killer" before reworking it, became an unexpected weapon in his escalating trade war with Beijing.
China in the Crosshairs
Behind closed doors, administration officials reportedly used the successful South Korea negotiation as both a template and a threat in discussions with Chinese representatives. The message was clear: America would not hesitate to rewrite trade terms with even its closest allies, making the prospect of prolonged resistance appear increasingly futile for Beijing.
A Strategic Blueprint
The approach demonstrated Trump's distinctive method of using bilateral agreements to create ripple effects across global supply chains. By securing concessions from Seoul on automotive exports and extending US tariffs on Korean trucks, the administration gained additional leverage in parallel negotiations with China, particularly regarding technology transfer and intellectual property protections.
The Xi Jinping Factor
This strategy placed Chinese President Xi Jinping in a delicate position. With the US demonstrating its willingness to renegotiate established trade pacts, China faced the prospect of economic isolation if it refused to come to terms. The South Korea deal thus became an unspoken warning of what might follow should negotiations collapse completely.
Legacy and Implications
The tactical use of the KORUS renegotiation highlights how traditional alliance management often took a backseat to broader economic objectives during the Trump presidency. This approach continues to influence current US trade policy and remains relevant as geopolitical tensions in East Asia persist.
