South Korea trade surplus with U.S. might push Korean companies to purchase more American oil and gas if Donald Trump is re-elected as president, according to a Bloomberg report on Monday. Citing anonymous sources, Bloomberg noted that South Korean officials are analyzing potential trade policies and expect that a Trump administration would closely examine America’s trade balances with its partners, including South Korea.
Since South Korea is a major importer of crude oil and liquefied natural gas (LNG) and has limited domestic energy resources, the country relies heavily on imports to meet its needs. Recently, South Korea’s trade surplus with U.S. has been rising, which could prompt its government to encourage local companies to buy more U.S. oil and gas if Trump returns to office and scrutinizes trade relations.
Trump has pledged to impose tariffs on imports, including a 10% tariff on all imports and a 60% tariff on goods from China. This stance on trade, combined with the U.S. deficit with South Korea, could lead South Korean firms to increase energy imports from the U.S. to avoid trade tensions.
As one of the world’s largest importers—third for LNG and fifth for crude oil—South Korea may also find it advantageous to buy more U.S. oil and gas given the instability in the Middle East, a major energy supplier.
In 2022, the trade deficit between the U.S. and South Korea reached $43.31 billion, an increase of 48% over the previous year. According to the Office of the U.S. Trade Representative, the U.S. exported $72.1 billion in goods to South Korea while importing $115.3 billion in goods from South Korea.
South Korea Trade Surplus with U.S.
