December 04, 2024

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Heritage Foundation Executive Vice President Derrick Morgan delivers a speech at the KITA CEO breakfast meeting event held at a hotel in Gangnam-gu, Seoul, Tuesday. (KITA)

Derrick Morgan, executive vice president of the US think tank Heritage Foundation, said he expected that economic cooperation between South Korea and the US would deepen, focusing on shipbuilding and semiconductors, if Donald Trump wins the 2024 US presidential race.

“The US and the rest of the world is overly dependent on Taiwan for semiconductors. … The innovation coming out of Korea these days is amazing and should be applauded,” he said during an event hosted by the Korea International Trade Association in Seoul on Tuesday.

He cited Korean conglomerate Hanwha Group’s recent acquisition of Philly Shipyard in Philadelphia for $100 million in January as an example of the potential in the shipbuilding sector.

“The investment in Pennsylvania was a huge step forward for the relationship. I think that's the kind of thing that grabs President Trump's mind as well where he could go to the shipyard and see what's happening,” Morgan said.

The event was held to offer insights into trends in the upcoming US presidential election and areas of cooperation between the two countries with the next US administration.

“A leadership change in the US, Korea’s second-largest trade partner and largest investment destination, will have a huge impact on global diplomacy, security as well as economy and industries,” KITA Chairman Yoon Jin-sik said while delivering an opening remark. “We should closely monitor how the US presidential race unfolds and need to be well prepared for the potential influence of the election result.”

Concerns over Trump’s pledge to slap more tariffs if reelected, 60 percent against Chinese goods, 10 percent against products from the rest of the world, Morgan said Tariffs on intermediate goods “make no sense at all, especially those we have a free trade agreement with.”

Tariffs on Chinese goods would be appropriate, however, and the Heritage Foundation wants to stop the importation of Chinese electric vehicles into the US market, he added.

He believes that tariffs on Chinese goods and a ban on the import of Chinese EVs will be realized soon. “If President Trump wins, I think that would be a first quarter, maybe second quarter legislative agenda.”

Whether Trump or his rival Vice President Kamala Harris wins the race, the alliance between the two countries will stay strong, he said. “If we're in a global competition with China, which I think we are. It's not smart to discriminate against our friends who need to be stronger as well like South Korea, Japan, Taiwan, and others.”

By Park Han-na (hnpark@heraldcorp.com)