Dr. Lee Analyzes U.S. Tariff Letter’s Impact on South Korea’s Investment Strategy

Feliciano School of Business Assistant Professor, Dr. Sunhyung Lee, recently published the article “What the U.S. Tariff Letter Means for South Korea’s New Investment Strategy”. According to Dr. Lee, the U.S. tariff letter sent by President Trump on July 7, 2025, signals a strategic shift in U.S.-Korea economic relations, pressuring South Korea to increase its investments in the United States or face a 25% tariff on all imports starting August 1. Rather than focusing solely on trade imbalances, the letter emphasizes relocating production to the U.S., particularly in politically favorable states. With regulatory uncertainty growing at home, South Korean firms may view U.S. investments as a safer, more strategic option. Proactive investment announcements—especially in Republican-led states—could help Korean companies avoid tariffs, build goodwill with American stakeholders, and strengthen long-term ties. As the deadline approaches with no extensions promised, the situation presents both a challenge and an opportunity for Korean businesses to reshape their global strategy.