Donald J. Trump’s slogan was “Make America Great Again,” emphasizing how America is a priority and will reconstruct the society quickly by helping the citizens get back to work. It is predicted that the election of Donald Trump will have influence on Korean economy.
Trump’s evaluation on Trans-Pacific Partnership (TPP) was a potential disaster ever since he was a candidate. The North American Free Trade Agreement (NAFTA) was regarded as a factor in killing jobs. By the third day Trump took office, he signed an excutive order to withdraw from TPP. Researchers are saying that if Trump’s protectionism strengthens, there is also a high possibility of renegotiating the terms of the United States-Korea Free Trade Agreement (FTA).
On Election Day, the instability of the financial market of South Korea increased as the result leaned toward Trump. The KOSPI index decreased by 2.5 % and the won value fell by 1.1 % compared to the day before. This might be a temporary decrease. However, if Trump’s promises are fulfilled, the instability could increase.
Xi Jinping, China’s president, announced China will champion free trade if Trump builds barriers. Xi attacked Trump’s protectionism, without mentioning his name, at the World Economic Forum. He also said no one would win in this trade war and made commitments on China opening to more imports and foreign investments. Xi also made sure that the Chinese exchange rate policy did not destabilize the global economy.
Anti-immigration & Revenge on THAAD
Trump’s anti-immigration orders are expected to affect 230,000 Korean illegal immigrants in the US. Trump signed an administrative order suspending federal funds to refuges. With this order, additional illegal immigrants’ entrance to America will be blocked, and illegal immigrants currently living in the US will be exported. There are 1.1 million illegal immigrants in the US and 230,000 are Koreans. The Ministry of Foreign Affairs (MOFA) of South Korea is planning to keep an eye on the Trump ministry’s policies and seek to find solutions to help Korean immigrants that are not qualified to stay in America.
China directly opposes to Korea’s acceptance of Terminal High Altitude Area Defense (THAAD). Experts say there may be some potential threats heading towards Korea. There have been continuous reports of people facing difficulties after the acceptance of THAAD was decided upon last July. The challenges have not been that noticeable yet. Delays in the delivery of supplies are just one of the many examples. As revanchism is becoming a reality, people are arranging alternatives.
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