Trump Raises Tariffs on South Korean Imports to 25%

US President Donald Trump has announced he is raising tariffs on South Korean imports to 25%. The move comes after accusations that Seoul has “not lived up” to a trade deal signed last year.

In a social media post, Trump said he would increase levies on a range of products, including automobiles, lumber, pharmaceuticals, and “all other Reciprocal TARIFFS.” The tariffs will rise from 15% to 25%. Trump also expressed frustration that South Korean lawmakers have been slow to approve the deal. He stated, “We have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to.”

South Korea Responds

South Korea expressed surprise, stating that it had not been officially informed of the decision to raise tariffs on some of its goods. Seoul is now seeking urgent talks with Washington to address the issue. South Korea’s Industry Minister, Kim Jung-kwan, who is currently in Canada, will visit Washington soon to meet with US Commerce Secretary Howard Lutnick.

The news had an immediate impact on South Korea’s stock market. The Kospi index fell initially on Tuesday but later rebounded by around 1.8%, as major exporters saw their shares recover.

Background on the Trade Deal

In October, Seoul and Washington reached a deal that included a pledge from South Korea to invest $350 billion in the US, with part of the funds directed to shipbuilding. The following month, the US agreed to reduce tariffs on certain products once South Korea started the process of approving the trade deal.

The agreement was submitted to South Korea’s National Assembly on November 26, and local media reports suggest it is expected to pass in February.

Impact on US Companies

The new tariffs will affect US companies importing goods from South Korea. These firms will face a 25% tax on the products they buy, including cars and other items covered by the deal.

Trump has frequently used tariffs as a tool in foreign policy during his second term in office. He has also previously threatened Canada with a 100% tariff if it entered into a trade deal with China.

Trump’s Broader Tariff Strategy

On Saturday, Trump threatened Canada with a 100% tariff if it struck a trade deal with China. Chinese officials later clarified that their “strategic partnership” agreement with Canada was not intended to undermine other nations. Canadian Prime Minister Mark Carney reaffirmed that Canada was not pursuing a free trade agreement with China, asserting that the Canadian government had communicated this to US officials.

Before these events, Trump had also announced plans to impose tariffs on eight countries, including the UK, which opposed US efforts to seize Greenland, an autonomous territory in the Kingdom of Denmark. Although Trump later backed down from the Greenland tariff threat, citing progress toward a “future deal,” the episode strained US relations with Denmark and other NATO allies.