Photo: Jacey Jetton Advisory committee Member of the Texas Governor’s Office of Economic Development
[TexasN] As uncertainty grows around President Donald Trump’s tariff policies, concerns are rising that they could become an obstacle for Korean small and medium-sized enterprises seeking to enter the U.S. market. However, some analysts suggest that the advantages of entering the world’s largest economy outweigh the burdens posed by tariffs.
Jacey Jetton Advisory committee Member of the Texas Governor’s Office of Economic Development Office, stated, “The U.S. remains one of the largest markets in the world, with a strong consumer base that imports goods from many countries. In particular, demand for Korean-made products remains high, and they are competitive enough to succeed here.”
Jetton noted, “The U.S. presidency is term-limited, and each administration brings different priorities, which steer the country in various directions. Currently, under President Trump—a leader with a business background—there is a strong push to bring back American manufacturing. Much of this effort stems from the realization after COVID that domestic production must return. Tariff policy is one tool to promote this reshoring of manufacturing.”
He emphasized, “The relationship between the United States and Korea, and especially between Korea and Texas, has long been strong and productive, benefiting both sides. I believe this relationship will continue to move in a positive direction.”
South Korea is one of Texas’s top six trading partners, and a growing number of Korean companies have been entering the Texas market. Consequently, Korean companies hoping to expand through Texas are increasingly concerned about tariff policies. Jetton acknowledged this concern, saying, “Yes, companies may have short-term concerns, but in the long term, the economic relationship between Korea and the U.S. will remain strong. It’s important to observe the situation carefully for now. Reviving domestic manufacturing will take time, but the demand for Korean goods remains strong throughout the U.S., including in Texas.”
Texas actively promotes itself as a destination for Korean companies to build factories and carry out manufacturing operations. The state government provides various incentives as part of its efforts to attract foreign investment.
Jetton added, “Texas is an ideal place to manufacture and distribute products globally. Although we are going through a period of confusion and uncertainty, we will eventually return to a more normalized and predictable environment. I am confident that the U.S. and Korea will continue to maintain a strong economic partnership.”
The Trump administration is currently implementing a 90-day tariff deferral. Jetton remarked, “We will have to monitor how this deferral affects the market in the coming months. As goods imported into the U.S. carry about a 10% added cost, global prices will eventually stabilize and equalize. Therefore, rather than fearing tariffs, Korean companies should focus on long-term strategies to meet ongoing demand for their products in Texas and the broader U.S. market.”
Catherine Wahrmund amiangs0210@gmail.com
