[Editorial] Trump's go-it-alone approach may be checked, but America First remains unchanged

U.S. President Donald Trump. White House

In the U.S. midterm elections, Democrats reclaimed majorities in both the House and Senate, putting a check on President Donald Trump's go-it-alone approach. That does not, however, mean that the many uncertainties facing South Korea will ease. Protecting manufacturing, attracting high-tech industries and countering China are trends deeply rooted across U.S. politics. Democrats, too, may disagree with Trump's tariffs and pressure on allies, but they are committed to protecting American industries and jobs. The approach may differ, but the focus on U.S. national interests is unlikely to change anytime soon.

What has changed is the decision-making structure. Agreements reached at the White House may face opposition in Congress, while congressional decisions may be blocked by a presidential veto. South Korea must now deal with two branches of power that check each other. Financial markets also reacted differently. After the election results were confirmed, U.S. stocks rose sharply overnight, but South Korean stocks were falling this morning (Nov. 5), led by semiconductor shares. Although the political uncertainty of the election has been resolved, changes in U.S. policy that could affect the South Korean economy remain a source of concern.

Investment in the U.S., War and Security: Congress Emerges as a New Variable

First, the $350 billion investment in the U.S. will require careful management. Both the $200 billion investment in strategic industries and the $150 billion in shipbuilding cooperation could come under scrutiny from the new Congress. The first investment project, a power plant in Texas, will require an assessment of its commercial viability and regulatory risks. Meanwhile, U.S. restrictions on building ships overseas pose an obstacle to expanding the construction of U.S. warships at South Korean shipyards. There is no guarantee that every project will proceed smoothly just because an agreement was reached with the White House.

Export controls on advanced semiconductor equipment to China are also an issue to watch. Although both parties have pursued this policy, it could burden South Korean companies with production facilities in China. The government should closely examine how related U.S. measures could affect domestic companies' production and facility investments.

By contrast, there may be room for positive change in the Iran war. If Democrats use their budgetary and oversight powers to apply pressure, continuing the war could become politically burdensome for President Trump. Markets are already responding to hopes for an end to the war. On Nov. 4, local time, West Texas Intermediate (WTI) and Brent crude prices plunged 8.29% and 8.67%, respectively. If the declines continue, inflationary pressure in the U.S. could ease, reducing the need for the Federal Reserve (Fed) to raise interest rates further. If the dollar's strength also moderates, that could help stabilize the won-dollar exchange rate. This would be welcome news for South Korea, which relies heavily on energy imports. However, with an actual end to the war still uncertain, the country must also prepare for sharp swings in oil prices, interest rates and exchange rates.

Security issues should be addressed by distinguishing between South Korea-U.S. consultations and inter-Korean and U.S.-North Korea dialogue. Consultations between the South Korean and U.S. military authorities are important for the transfer of wartime operational control, while U.S. laws and regulations and nuclear nonproliferation principles are central to nuclear-powered submarines, uranium enrichment and spent nuclear fuel reprocessing. If President Trump pursues a summit with North Korea, new negotiations could unfold over sanctions on North Korea and military issues on the Korean Peninsula. The government must secure cooperation from the U.S. Congress while ensuring that South Korea's security interests are not sidelined in U.S.-North Korea dialogue.

Securing congressional support for agreements reached at the White House is another diplomatic task for the Lee Jae-myung government. With the U.S. political landscape changed, it must make a concrete case to both parties for the industrial and security benefits those agreements would bring to the United States as well.

Trump Was Ultimately Judged on Livelihoods... What About Our Politics?

In this midterm election, voters were likely influenced by resentment toward President Trump's high-handed attitude and calls to restore democracy, which had been undermined. But what voters felt most urgently was, as ever, the cost of making ends meet. According to reports, 39% of respondents in exit polls named the economy as the top issue, while 32% chose democracy. Opposition to the Iran war is also tied to the reality of rising oil prices and the resulting cost-of-living burden. Voters were asking whether their lives had actually improved, rather than responding to grand political slogans.

Even with immense power and impressive economic and diplomatic achievements, a politician cannot earn high marks if people's lives do not improve. The fiercer the political confrontation and debate, the easier it is for the difficulties people face every day to be pushed aside. We hope our own political leaders will take at least today to reflect on what is making people struggle and what matters most right now.

This content was produced with the assistance of AI translation services.