The U.S. Tariff Policy and the Need for Cooperation with China

In an interview with Kyunghyang Shinmun, Chad Bown, a senior researcher at the Peterson Institute for International Economics (PIIE), said that the United States should focus on responding to China's market dominance, and that tariff pressure on allies could weaken that goal. He said that the U.S. should pursue supply chain restructuring and containment of China together with allies such as Canada, South Korea, Japan, and Europe, and pointed out that a method of imposing tariffs while passing costs on to allies makes cooperation difficult. He especially said that industries where South Korea has strengths, such as semiconductors, batteries, and shipbuilding, are important areas that can replace China. Researcher Bown also explained that China's influence remains strong in supply chains related to semiconductors, critical minerals, and artificial intelligence, and that countries must prepare alternatives through subsidies, investment incentives, and policy coordination. However, he added that because U.S. tariffs are likely to remain a major policy tool, exportdependent countries such as South Korea will need to adapt to the new trade environment.