With talk of Donald Trump possibly returning to the presidency, Korean businesses and startups are wondering what it could mean for trade, jobs, and growth in the U.S. market. For those eyeing the U.S. as a key destination, here’s a practical look at what might change and how to stay ahead.

1. What Happens to U.S.-Korea Trade?

The Korea-U.S. Free Trade Agreement (KAFTA) is the backbone of trade between the two countries. Trump’s earlier term saw it renegotiated, tightening rules on cars and opening Korean markets further to U.S. exports.

If Trump returns, he might push for more changes or even new tariffs on big-ticket Korean exports like cars and steel. To prepare, Korean businesses should:

• Look into diversifying markets to reduce dependency on the U.S.
• Keep an eye on tariff policies to adjust pricing when needed.
• Ensure compliance with evolving trade rules.

2. “America First” Policies Could Shake Things Up

Trump’s “America First” policies favor local manufacturing and cutting imports. For Korean companies, this could lead to:

• Higher tariffs or restrictions on foreign-made goods.
• A need to manufacture locally in the U.S. to avoid trade barriers.

Setting up a U.S. branch or working with American production partners might be a smart move, even though it requires significant investment.

3. What About Hiring Americans?

If Trump brings back policies to boost U.S. jobs, there might be benefits for Korean businesses hiring locally, like tax breaks or incentives. But expect:

• Tougher immigration rules, making it harder to send Korean staff to the U.S.
• Higher labor costs compared to hiring in Korea.

To succeed, consider:

• Training local employees to align with Korean business practices.
• Working with immigration experts to sort out visa issues for key staff.

4. Tech and Innovation: A Double-Edged Sword

Trump’s administration focused heavily on advancing U.S. technology, which sometimes sidelined foreign companies. Korean startups in AI, green tech, or advanced manufacturing might face:

• Opportunities to partner with U.S. companies needing innovative solutions.
• Challenges as policies favor U.S.-based firms.

To stand out, focus on strategic alliances and highlight unique strengths your company brings to the table.

5. Navigating U.S.-China Tensions

Under Trump, U.S.-China tensions disrupted global supply chains, and a repeat could affect Korean businesses. Expect:

• Pressure to reduce reliance on Chinese parts in products sent to the U.S.
• Opportunities to be a trusted supplier as the U.S. diversifies away from China.

Stay flexible and keep an eye on geopolitical changes to adjust your strategy as needed.

Tips for K-Beauty Brands

The U.S. remains one of the biggest markets for Korean beauty products, and a Trump presidency might influence consumer behavior and trade policies. Here’s how to stay competitive:

• Focus on Clean Beauty: Highlight natural ingredients and eco-friendly packaging—these trends resonate strongly in the U.S. market.
• Adapt to FDA Guidelines: Ensure compliance with U.S. cosmetic labeling and safety standards to avoid delays.
• Partner with Local Influencers: Collaborate with U.S.-based beauty influencers to build trust and expand reach.
• Leverage K-Beauty Trends: Emphasize unique Korean skincare regimens, like multi-step routines and innovative textures.

Tips for Korean Food Manufacturers

Korean food continues to grow in popularity in the U.S., but scaling up requires strategy. Here’s how to position your brand for success:

• Certifications Matter: Ensure products meet U.S. FDA regulations and acquire certifications like USDA Organic or Non-GMO if applicable.
• Emphasize Authenticity: Highlight traditional recipes and high-quality ingredients to stand out in a crowded market.
• Prepare for Labeling Requirements: Make sure all labels include English translations, nutritional information, and allergen warnings.
• Consider Local Production: If tariffs rise, manufacturing or packaging locally in the U.S. could cut costs and simplify logistics.

Tips for Marketing in the U.S.

If the U.S. market shifts, your online strategy will matter more than ever. Here’s how to stay relevant:

• Use the right keywords like “Korean products in the U.S.” and “U.S.-Korea trade policies.”
• Write content tailored to American audiences, showcasing your value.
• Team up with local influencers to build trust and visibility.
• Promote sustainability if applicable—it’s a big selling point now.

A Trump presidency could bring big changes, but for prepared Korean businesses, it’s not all bad news. By staying adaptable and strategic—whether that means diversifying markets, hiring locally, or building U.S. partnerships—there are still plenty of opportunities to thrive. Keep an eye on trade updates, plan ahead, and stay flexible to make the most of what comes next.

Written by Yewon Lee, Digital Media Specialist at LK International.

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