South Korea’s growing trade surplus with the United States could lead to increased purchases of U.S. oil and gas if Donald Trump becomes president, according to Bloomberg sources.
South Korean officials have been evaluating future trade scenarios and believe a Trump presidency would focus on trade balances with partners, including South Korea. As a major importer of crude oil and LNG, South Korea lacks domestic resources.
With the trade surplus between South Korea and the U.S. rising, the South Korean government might encourage local companies to buy more American oil and gas if trade relations come under scrutiny in a Trump administration, Bloomberg reports.
Trump has proposed tariffs of 10% on all imports and a 60% tariff on goods from China. The potential for such tariffs and the U.S. trade deficit with South Korea could drive the Asian nation to increase its energy imports from America.
South Korea is the third-largest importer of LNG globally, after China and Japan, and the fifth-largest importer of crude oil, following China, the U.S., India, and Japan. Ongoing turmoil in the Middle East could further motivate South Korean companies to boost their oil and gas imports from the U.S., according to Bloomberg sources.
In 2022, the U.S. goods trade deficit with South Korea was $43.3 billion, a 48% increase from 2021, per the Office of the U.S. Trade Representative. U.S. goods exports were $72.1 billion, while imports from South Korea totaled $115.4 billion.
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