Trump Moves to Increase Tariffs on South Korean Products to 25%

U.S. President Donald Trump on Monday announced a sharp increase in tariffs on South Korean imports, escalating trade tensions between Washington and Seoul, as per Reuters. 

The decision comes amid accusations that South Korea has failed to implement commitments under a previously agreed trade and security pact. 

Tariff Hike Targets Key Export Sectors 

The tariff increase will raise duties from 15% to 25% on a range of South Korean goods, including automobiles, car parts, lumber and pharmaceuticals. The move directly threatens South Korea’s export-heavy economy, particularly its automobile sector, which accounts for 27% of the country’s shipments to the United States. 

"South Korea's Legislature is not living up to its Deal with the United States," Mr. Trump wrote on his Truth Social platform, adding that tariffs were being raised "because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative." 

Under the original agreement finalised after Mr Trump met South Korean President Lee Jae Myung in October, Washington had reduced auto tariffs from 25% to 15%, while Seoul committed to investments and broader cooperation. The new tariff threat effectively reverses that concession. 

Seoul Seeks Urgent Talks to Avert Fallout 

South Korea’s Presidential office said it had not received prior notice of the tariff move and confirmed that Trade Minister Kim Jung-kwan would travel to Washington for discussions with U.S. Commerce Secretary Howard Lutnick. 

Officials reiterated that the deal does not legally require parliamentary approval, describing it as a memorandum of understanding rather than a binding treaty. However, uncertainty around its legislative status appears to have triggered Washington’s response. 

A senior official told AFP that authorities were reviewing whether the pact had been formally submitted to parliament, but declined to provide further details. 

Export Risks Rise Amid Global Trade Tensions 

A tariff jump back to 25% would significantly weaken South Korea’s competitiveness against peers such as Japan and the European Union, which currently face 15% U.S. tariffs under separate agreements.  

With nearly half of South Korea’s vehicle exports destined for the US, the decision could disrupt manufacturing output, trade flows and investor sentiment. 

Read More: US President Donald Trump Announces 25% Tariffs on Countries Doing Trade with Iran! 

Conclusion 

The proposed tariff hike marks a sharp turn in U.S.-South Korea trade relations and raises concerns for exporters, investors and policymakers. With negotiations set to resume in Washington, the outcome of talks will be crucial in determining whether the escalation translates into concrete trade disruption. 

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