"As trade conflicts prolong, both Korean and American companies and consumers will bear the burden," said James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), in an interview with Aju Economy.
Amid rising trade tensions due to the implementation of Section 301 tariffs by the U.S., Kim emphasized the need for dialogue and negotiation to resolve trade issues. He stated, "It is more important to enhance the competitiveness of both countries than to focus on winning or losing in trade disputes."
On July 24, the U.S. applied Section 301 tariffs to 60 trading partners, including South Korea, citing regulations against imports produced with forced labor. As a result, products from South Korea that fall under non-exempt categories and have a Most Favored Nation (MFN) tariff rate below 12.5% will now face a total tariff rate of 12.5%. However, items subject to Section 232 of the Trade Expansion Act, such as automobiles, steel, and aluminum, are excluded.
Kim noted, "The economies of South Korea and the U.S. are closely interconnected through investment, supply chains, and advanced manufacturing. If trade conflicts persist, it will inevitably affect not only Korean companies but also American businesses operating in Korea."
He expressed concern that as government communication improves, companies can continue to invest and operate more stably, warning that an expansion of tariffs and retaliatory measures would ultimately burden businesses, consumers, and investors.
Regarding the recent data breach incident involving Coupang and discussions surrounding Section 301 in the U.S., Kim took a cautious stance. He stated, "It is necessary to distinguish between the various opinions coming from Washington and the official position of the U.S. administration," and expressed hope that the Korean government and Coupang would find a reasonable solution through dialogue to avoid unnecessary burdens on the overall Korea-U.S. relationship.
He also emphasized the importance of evaluating Coupang's contributions to domestic investment and employment. "Coupang has played a significant role in Korea-U.S. economic cooperation through continuous investment and large-scale employment," he said.
Kim highlighted that the core of government regulation lies not in the quantity of regulations but in predictability and fairness. He stated, "When policy goals are clear and regulations are applied transparently and consistently, companies can make long-term investment decisions," adding that regulations on digital platforms should not be perceived as non-tariff barriers targeting specific American companies but should operate based on objective principles.
He described AMCHAM's role as a bridge connecting Seoul and Washington, as well as government and businesses. AMCHAM conducts an annual 'Washington Doorknock' to meet with U.S. government officials, and this year, it also initiated the 'K-Doorknock' with direct participation from Korean companies.
Kim concluded, "In a rapidly changing trade environment, direct communication is more important than ever. AMCHAM will continue to contribute to the advancement of Korea-U.S. economic cooperation through its role as a bridge between government and businesses."
* This article has been translated by AI.
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