Trump Elects Ulsan's Export Crisis? Opportunity?... "Needs Strategy"

[Anchor]
As U.S. President-elect Trump has pledged to impose universal basic tariffs, we are watching what changes will happen in South Korea, which relies heavily on exports to the U.S., especially in Ulsan, which has the highest proportion of exports to the U.S.

There is an analysis that it can be a crisis or an opportunity, and a thorough and diverse response strategy is needed.

I'm reporter Koo Hyun-hee of Ulsan Central Broadcasting Station.

[Reporter]
Trump has pledged to impose a 10% to 20% universal basic tariff on all imported goods.

In particular, he said he would deprive China of the treatment of the most favored country and impose a high tariff of more than 60% on Chinese products.

Currently, most of Ulsan's exports to the U.S. except for freight cars are tariff-free.

So, as Trump has vowed, the burden could grow astronomically if tariffs are imposed more than 10% in the future.

In particular, automobiles account for the largest portion of Ulsan's exports to the U.S.

As of last year, it exceeded 64%.

It is also the item that is most feared to be hit by Trump's election.

In particular, tensions in the automobile industry are growing as there is a possibility of abolishing the mandatory electric vehicle and abolishing the IRA, which subsidizes electric vehicles and batteries.

[Roh Hyun-seung / Head of the Korea Automobile Industry Cooperative: It was the same during Trump's first term, but exports of (automobile) parts decreased a lot. So, if you add the same phenomenon to the second term, you will do more. This phenomenon will not be less. So I have a sense of crisis that it will be a little difficult unless I find a way out of export.]

However, some analysts say that the crisis can be used as an opportunity.

If the IRA is abolished, eco-friendly cars from the U.S. and eco-friendly cars from Korea can compete on an equal footing,
It is an opportunity to lead autonomous vehicle technology while the speed of replacing internal combustion vehicles of
electric vehicles is slowing down.

The shipbuilding industry is also expected to benefit from the opportunity to participate in the maintenance and repair of U.S. ships and the U.S. move to check the public.

[Park Sun-min / Ulsan Regional Head of the Korea International Trade Association: Trump's strong national priority, post-green policy line, and hard-line policy toward China provide us with both crises and opportunities]

Therefore, diversifying the exporting countries of U.S.-dependent regional industries, along with careful response strategies, is also a challenge.

I'm Hyun Ji Hee of JCN News.


Video recording: Kim Chang-jong
Graphic: Reasonji