Trump strains U.S.–South Korea ties as Seoul reassesses strategic priorities

Department of Research, Studies and International News 21/07/2025

The once-celebrated relationship between South Korea and the United States is
showing visible cracks under the weight of Washington’s aggressive economic
nationalism. With President Donald Trump once again steering the U.S. foreign
and trade agenda under the banner of “America First,” South Korea is finding
itself on increasingly uncertain ground, both economically and diplomatically.
The latest flashpoint in this strained partnership is Trump’s recent threat to
slap a 25% tariff on South Korean exports, set to take effect on August 1 unless
a trade agreement is reached. For South Koreans, this isn't just a trade dispute,
it signals a broader disillusionment with what was once seen as a steadfast ally.
Many South Koreans have historically viewed the United States with
admiration, embracing its culture and democratic ideals. But today, growing
numbers feel alienated and even betrayed. Sidney Sim, a 38-year-old engineer,
once dreamed of visiting the U.S., admiring it as a beacon of innovation and
prosperity. Now, he describes the U.S. as a “geopolitical threat” rather than a
leader of global stability.
South Korea hosts approximately 28,000 U.S. troops, a remnant of Cold War-
era strategy, and is one of Washington’s closest partners in the Asia-Pacific. Yet
this partnership is being tested by what many see as Washington’s increasingly
transactional and coercive approach.
In a recent Pew Research survey, South Korean approval of the U.S. dropped
sharply from 77% in 2024 to just 61%. The sudden imposition of tariffs,

affecting crucial industries like automobiles, steel, semiconductors, and
pharmaceuticals, has triggered alarm across Seoul. Exports, which make up
over 40% of South Korea’s GDP, declined by 2.2% in the first 20 days of July
alone, according to the Korea Customs Service.
Behind Trump’s tariff rhetoric lies a push for economic leverage. He has
criticized South Korea’s contributions to the upkeep of U.S. Forces Korea
(USFK), claiming Seoul pays “very little,” and hinted at demanding more
financial support. This has revived fears that the U.S. military presence may
increasingly be treated as a bargaining chip rather than a symbol of alliance.
South Korea’s top trade officials are scrambling to avoid a breakdown. A
tentative agreement with the Trump administration may be possible by the
August deadline, but the damage to public trust may already be done.
Ordinary South Koreans are increasingly expressing resentment. Kim Hyunju, a
customer service agent, noted that while her own job isn’t directly impacted by
the tariffs, the broader implications feel unjust. “It seems like the U.S. uses
money and raw power to get its way. It doesn’t feel like the actions of a true
ally,” she said, adding that her trust in the bilateral relationship has waned.
Kim Chang-chul, a strategist based in Seoul, acknowledged that Trump’s moves
could hurt South Korean businesses but also pointed to Washington’s
geopolitical maneuvering, particularly its push for South Korea to increase its
purchases of U.S. liquefied natural gas. This reflects the U.S. ambition to use
energy diplomacy to reorient Asia-Pacific economic dependencies.
However, experts in Seoul are warning of deeper structural risks. Keum Hye-
yoon of the Korea Institute for International Economic Policy (KIEP) emphasized
that Trump’s version of “fairness” ignores the intricacies of interdependent

supply chains. By imposing tariffs without accounting for mutual reliance, the
U.S. could harm not only its partner economies but also its own.
The Korean Confederation of Trade Unions (KCTU) confirmed that layoffs,
halted production, and the closure of small manufacturers are on the rise.
Smaller firms, lacking the capacity to relocate production or find new export
markets quickly, are particularly vulnerable. These disruptions could trigger
broader employment crises in the coming months.
South Korea has faced difficult moments with the U.S. before. In 2002, the
deaths of two schoolgirls struck by a U.S. military vehicle ignited mass protests.
In 2008, concerns over U.S. beef imports sparked further unrest. But the
current friction, centered on economic bullying rather than tragedy or public
health, may signal a more lasting fracture.
President Lee Jae-myung, who took office in June, has already emphasized the
importance of strengthening ties with China, a significant shift given
Washington’s increasing push for its allies to isolate Beijing. Analysts suggest
that Seoul is being forced to recalibrate its foreign policy, balancing its
economic needs with the geopolitical pressures imposed by the West.
According to KIEP’s Keum, South Korea’s once-idealized alliance with the U.S. is
transforming into a conditional partnership, where economic interests trump
solidarity. “South Korea should not navigate this alone,” she urged, proposing
joint strategies with the EU, Japan, and Canada to resist Washington’s coercive
trade practices.