Changes in U.S. Trade Policy Anticipated Following Midterm Elections

The Democratic Party's control of both chambers of Congress in the U.S. midterm elections is expected to bring changes to the country's industrial and trade policy landscape. The South Korean government plans to proactively assess potential policy shifts resulting from this congressional power realignment while ensuring the stable implementation of the existing Korea-U.S. trade agreement.

On November 6, the Ministry of Economy and Finance held the 276th Foreign Economic Council Meeting at the Government Seoul Complex, chaired by Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il. The meeting focused on discussing the implications of the U.S. midterm elections on foreign economic conditions and the government's response strategies.

The government anticipates that key U.S. policies, including domestic industry support and supply chain strengthening, will remain unchanged following the elections. However, it recognizes that changes in congressional composition could alter the conditions for advancing major policies. Therefore, it plans to proactively review trade measures such as tariffs and export controls, as well as legislative and budgetary considerations for industry support policies.

While monitoring the potential impact of U.S. policy changes on domestic companies' exports and investments, the government also aims to ensure the stable implementation of the existing Korea-U.S. trade agreement. To achieve this, it will enhance cooperation among relevant ministries and expand communication with the U.S. administration, Congress, and state governments.

Additionally, the government plans to support stable export and investment conditions for domestic companies and actively seek economic cooperation opportunities in strategic industries such as shipbuilding and energy.

Deputy Prime Minister Lee stated, "The government will ensure the stable implementation of the existing Korea-U.S. trade agreement through close cooperation among relevant ministries and strengthen communication with the U.S. administration, Congress, and state governments."