Trump's intensified protectionism may impact S. Korean industries

[Anchor]

The Trump administration's second term is expected to pursue stronger protectionism.

In particular, it seems that the containment of China will intensify, and our industrial sector is on high alert.

Kim Ji-sook reports on what impact the results of this election will have on the domestic industry.

[Report]

The first target of Trump's second-term industrial and trade policy is expected to be China.

[Donald Trump/Former U.S. President/October, 2024: "Because China thinks we're a stupid country. A very stupid country. Not one president charged China anything."]

With high tariffs of 60% and stricter controls on advanced technology exports expected, the outlook is concerning.

For now, the semiconductor industry, which leads our exports, can breathe a sigh of relief.

This is because it is anticipated that the gap in advanced fields such as semiconductors, where China is rapidly catching up, can be maintained.

On the other hand, if China's exports to the U.S. are blocked, industries like steel and chemicals will face the burden of competing with cheap Chinese products in other regions.

The Biden administration's green policies and the Inflation Reduction Act have brought uncertainties that many wanted to avoid.

[Donald Trump/Former U.S. President/Last month: "...and on day one of the Trump administration, I will terminate Kamala's insane electric vehicle mandate and we will end the green new scam once and for all. Once and for all."]

If subsidies are reduced, the battery and electric vehicle sectors are expected to be hit.

However, considering the recent slowdown in electric vehicle demand and the increase in hybrid exports, the overall impact on the automotive industry may not be significant.

In particular, even if subsidies are reduced, the promise of lowering corporate taxes means that the overall profit and loss must be evaluated.

[Cho Sang-hyun/Director of International Trade and Commerce Research Institute, Korea International Trade Association: "He also pledged to reduce subsidies while slightly lowering corporate taxes. Even if subsidies are reduced, there could be effects that offset the reduction in benefits we receive..."]

Today, our stock market saw declines in the secondary battery sector but saw increases in the defense and financial stocks, considered 'Trump beneficiaries', leading to mixed sentiments.

This is KBS News, Kim Ji-sook.