Democrats mimic Trump’s hardball tactics on business

After scaling the steep terrain of tariff negotiations, it is hard not to question how the outcome turned so one-sided. It feels as though we were hauled into an alley, stripped of both pockets, and left to feel relieved that at least the cash tucked in our socks was spared. A commemorative photo released by the White House says it all. Ten officials, five from each country, are posing with thumbs up. Yet only three are beaming—President Donald Trump, Commerce Secretary Howard Lutnick, and Secretary of State Marco Rubio—all on the American side.

South Korea’s negotiating team described the talks as “like a war” and said they truly understood what it meant to feel “drained of blood.” Whenever tensions rose, U.S. officials would get up and say, “Let’s just go with a 25 percent tariff,” forcing the Korean side to hold on desperately. Fortunately, playing the MASGA card—Make American Shipbuilding Great Again—helped break the stalemate. Major business leaders also stepped in, including Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Chairman Chung Eui-sun, and Hanwha Group Vice Chairman Kim Dong-kwan. During the negotiation, which is widely seen as a strong defensive performance, the government, ruling party, and business community stood as one team.

But the united front quickly collapsed upon returning from Washington. Like athletes heading back to their clubs after national team duty, the parties split ways. The government and ruling party, who had sweated through negotiations with a stubborn U.S. administration, are now taking a hard-line stance against Korean businesses. In rapid succession, they are pushing tougher commercial law revisions, the Yellow Envelope Act, and a corporate tax hike. No plea or explanation seems to get through. For many companies, facing the Democratic Party now feels as daunting as dealing with President Trump.

There is an uncanny resemblance between the Trump administration’s view of foreign countries and the Democratic Party’s attitude toward Korean businesses. Both prioritize the interests of their core supporters. For Trump, it was “America” and white voters. For the Korean government, it is individual stock investors and labor unions. If their own side benefits, they pay little attention to the damage done to others. Textbook arguments—such as tariffs hurting free trade and eventually burdening consumers, or business uncertainty stifling economic growth—fall on deaf ears.

At times, there is a cycle of mixed signals that only heightens false hope. President Trump would occasionally say, “I am generous,” as if ready to make concessions, but the outcome was always predetermined. India and Switzerland, lulled by a friendly atmosphere, were blindsided. Likewise, the Korean government and ruling party spoke of “business-led growth” and increased engagement with the private sector, giving business leaders cautious optimism. But disappointment soon followed. On June 30, the Democratic Party held a discussion with business groups about the commercial law revision, only to pass the bill three days later. On July 14, they listened to concerns about the Yellow Envelope Act, then vowed the next day to pass it “no later than next month.”

A drop in tariffs from 25 percent to 15 percent may seem like a win, but for companies that previously paid nothing, it means a sharp rise in costs. Just like Hyundai and Kia, which posted record-high second-quarter revenue but saw operating profits plummet, the full impact of the tariff shock expected in the second half of the year remains difficult to predict. On top of that, businesses now face a storm of simultaneous blows: instability over management rights from commercial law revisions, tighter liquidity from legal uncertainty, labor tensions under the Yellow Envelope Act, and rising costs from a corporate tax hike. Few companies can withstand this all at once.

With most global tariff negotiations now settled, companies must head into the global marketplace armed with their individual tariff “report cards.” A good army wins with logistics, but at the moment, businesses can expect little in the way of supply from home. It is time for the government and ruling party to come together to ease excessive burdens on the private sector and eliminate unreasonable regulations. They should recall the frustration of facing an uncompromising United States. The Lee Jae-myung administration, which claims to stand for pragmatism, must not follow in Trump’s footsteps. One hopes they will take a different path.