South Korean-American relations further sour amidst tariff contentions
On September 4th, 2025, U.S. Immigration and Customs Enforcement (ICE) raided a Hyundai battery plant in the state of Georgia, arresting 475 people, the largest raid ever performed by ICE. During the raid, over 300 South Korean workers were arrested, almost all of whom would be deported back to South Korea. The Trump Administration claimed that many of the South Koreans arrested violated their B1 visas, which allow for short-stay business trips of up to 75 days; therefore, they were working illegally in the US. However, it was found that in the case of at least one deportee, they were allowed to stay and work in the factory legally and did not violate their visa, as reported by the Department of Homeland Security (DHS). South Korean officials said that President Trump tried to offer opportunities to stay in the country by training American workers, though everyone arrested ultimately returned to South Korea. Although these arrests impacted the factory’s operations, they also added significant tension to South Korean-U.S. relations that are already strained by Trump’s tariffs.
Relations between South Korea and the U.S. have generally been strong ever since the end of the Korean War, when the US headed a UN coalition to fight against North Korea. As a result, the US worked closely to help develop South Korea’s post-war defence and significantly funded the country’s development. In March 2012, the Korea-United States Free Trade Agreement (KORUS FTA) came into effect. This bilateral free trade agreement between the US and South Korea was a huge step forward in economic cooperation between the two countries and was the largest bilateral free trade agreement signed in American history. However, this faithful development in trade would change during the second term of President Trump.
Throughout his second presidency, Trump has sought to impose additional tariffs on South Korean goods, and after negotiations with the South Korean government, the tariff rate was set at 15% for $350 billion in South Korean investments in the US. However, as of late September, the U.S. government has demanded that the South Korean government pay up the $350 billion upfront, although South Korea has refused to do so, citing the crippling effect it would have on its economy. Furthermore, the U.S. has demonstrated interest in further profiting from South Korean investments to complement the $550 billion promised by Japan. However, South Korea has rebutted, saying that its economy is two-fifths the size of the Japanese economy, and anti-American sentiment is rising in the country, as many South Koreans are enraged after interviews regarding American treatment of the arrested Hyundai factory employees. President Trump would try to backtrack on the decision to deport the Korean migrants because they were highly skilled workers who knew how to produce lithium batteries and semiconductors, crucial technologies that Trump wanted to develop within the U.S. These workers were intended to train American workers in the first place but companies are likely to be hesitant with their investments in the U.S. because of the increasing likelihood that their highly skilled workers will be arrested and deported as well.
The tensions between the U.S. and South Korea ultimately put more pressure on the U.S. than on South Korea. The South Korean investments were intended to create more jobs in crucial technological sectors within the US, as one of Trump’s campaign promises was a pledge to ensure products in the US were made in America. However, these jobs and factories have another important factor in the semiconductor arms race between China and the U.S. (nicknamed “the Chip War”), amplified by the latest trade war regarding tariffs between the two countries. Specifically, South Korea is fifth globally in semiconductor development, which works to the U.S.’s benefit in ensuring its dominance over China. Given that some of these investments were intended to help semiconductor development in the U.S., the Trump administration likely lost an opportunity to further advance in the Chip War against China.
Ultimately, the U.S.’s decision to arrest and deport over 300 South Korean employees does not bode well for the future of U.S. relations with South Korea. Specifically, the U.S.’s mistreatment of the arrested Koreans only worsens their relations with South Korea and increases fear among Korean-American communities. Without the Trump administration expediting visas for Korean workers, they will not only jeopardize relations with long-lasting trading and military allies like South Korea, but the President will also jeopardize the creation of jobs he committed to during his reelection campaign. Because the investments by South Korean and Japanese companies built factories, they would create new jobs in the U.S. However, without the experienced employees to train them, these factories would not be able to function, such as the Hyundai factory in Georgia. Overall, the Trump Administration’s isolationist policies will ultimately cause more chaos and harm to the United States’ economy and foreign relations than do good.
