WASHINGTON/NEW YORK (Reuters) - In light of U.S. President Donald Trump's assertion that South Korea is benefiting from U.S. military support while imposing higher tariffs, experts are calling for a comprehensive reevaluation of the strategic alliance between the two countries. Trump's remarks, perceived as seeing South Korea as a "free rider," have prompted predictions that he may demand a significant increase in South Korea's defense budget, potentially up to 5% of GDP, and seek reductions in subsidies under the CHIPS Act.
Analysts recommend South Korea take proactive steps to counter Trump's claims by emphasizing its contributions to the U.S. economy, particularly in sectors like shipbuilding and LNG. Suggestions include improving non-tariff barriers and boosting South Korea's role in regional security to address U.S. concerns and strengthen the alliance.
Victor Cha from the Center for Strategic and International Studies highlighted that South Korea should not be surprised by Trump's expectations, given the trade surplus it holds with the U.S. and the administration's strategic view. Meanwhile, Andrew Yeo of the Brookings Institution emphasized the need for South Korea to clarify its economic role and dispel any misconceptions held by the U.S. administration.
Bruce Bennett from RAND Corporation indicated that South Korea might face demands for increased defense spending and fair trade practices, potentially leading to renegotiations of the defense cost-sharing agreement. Robert Rapson, a former U.S. ambassador to South Korea, warned of possible reductions in U.S. troop presence if demands are not met.
Tami Overby from the Albright Stonebridge Group expressed concerns over Trump's misunderstanding of the tariff situation, suggesting that South Korea should leverage this period of political transition to formulate a strategic proposal for cooperation in various sectors, including energy and technology.
As the Trump administration's stance on tariffs and defense costs looms, South Korea's swift resolution of its political crisis is seen as crucial to effectively engaging with the U.S. and navigating these complex issues.
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