Trump’s Tariff Threats Loom Over South Korea’s Big Tech Regulations

Seoul: Only hours after South Korea and the United States concluded what appeared to be a successful summit, U.S. President Donald Trump shocked Seoul's policy circles by threatening "substantial" tariffs and export restrictions against any country that decides to regulate American technology giants. While Trump did not specify targets, it was clear that Europe might be first, with South Korea potentially next.According to Yonhap News Agency, this threat is more than just a typical episode of Trump's brinkmanship. The global economy is increasingly centered on artificial intelligence and digital platforms. The power to set rules for Big Tech, from content moderation to data governance, translates to both market dominance and political leverage. Trump's statement suggests that regulation itself could be perceived as a trade offense.Europe has already enacted significant legislation, such as the Digital Markets Act and Digital Services Act, to ensure companies like Google, Apple, and Meta open their platfor ms and curb anticompetitive practices. South Korea faces similar challenges, with American platforms dominating various sectors and influencing consumer habits. This has led to legislative efforts in South Korea to introduce an "online platform law" and impose network usage fees on heavy data services.However, Washington views these actions as "nontariff digital barriers." Earlier this year, the U.S. Trade Representative highlighted them in its national trade barriers report, and Trump has escalated this issue with his recent threat.The situation poses a dilemma for South Korea, which must balance the protection of local innovation and consumer rights against the risk of unraveling trade agreements due to U.S. tariff threats. The lack of global consensus on digital regulation further complicates matters, as Trump's stance could isolate the U.S. just as digital standards become strategically important.Seoul must recognize that Trump's warning extends beyond Europe and that digital platform regulation is now a matter of international trade. South Korea needs to develop policies that maintain economic sovereignty while ensuring resilience against external pressures. The challenge lies in defending the right to regulate Big Tech while preparing for potential trade repercussions.