United States-South Korea trade conflict: economic and security issues in the Trump era and beyond

This chapter examines the evolution of the United States-South Korea trade relationship, with particular attention on developments during the Donald Trump-Moon Jae-in era. It finds that relations have been buffeted in recent years by Trump's 'America first' policy and the import restrictions and tariffs that have grown out of it. Attenuating conflict have been support of major business associations for revision of the KORUS FTA, U.S. problems with China which have overshadowed trade imbalances with Korea, South Korean foreign direct investment in the United States, new dialogue and dispute settlement mechanisms, and bilateral concern for containing conflict in the face of security threats from North Korea. The chapter also finds that the United States and South Korea have been developing a broader alliance that has both security and economic components and whose geographic range extends to new areas in Asia and beyond and whose functional purpose is broadening as well.