Former President Donald Trump has announced plans to increase tariffs on goods imported from South Korea, escalating trade tensions between the two countries. The move, revealed Monday via Trump’s social media platform, comes after South Korea’s National Assembly has yet to ratify a trade agreement reached with the U.S. last year [[1]]. The potential tariff hike-raising duties from 15% to 25% on items including automobiles and pharmaceuticals-reverses course from a deal that sought to lower barriers to trade and follows a recent pattern of Trump signaling possible trade policy shifts [[2]], [[3]].
Former President Donald Trump announced Monday he will raise tariffs on various South Korean goods to as much as 25%, alleging the country “is not fulfilling” a previously agreed-upon trade pact with the United States.
“Because Korea’s National Assembly has not ratified our historic trade deal, which is their prerogative, I am increasing tariffs on South Korean cars, lumber, pharmaceutical products, and all other reciprocal tariffs” from 15% to 25%,” Trump wrote on his social media platform, Truth Social.
Washington and Seoul reached a trade and security agreement several months ago following months of tense negotiations.
The agreement was finalized after a meeting between Trump and South Korean President Yoon Suk Yeol in October. It included commitments from South Korea to make investments alongside a reduction in U.S. tariffs.
Under the terms of the deal, Washington would maintain tariffs of up to 15% on South Korean goods, including automobiles, auto parts, and pharmaceuticals. Tariffs on South Korean automobiles were slated to be reduced from a 25% level.
Automotive products account for 27% of South Korea’s exports to the U.S., which imports approximately half of South Korea’s automobile exports.
Reinstating the higher tariff would place South Korean exports at a disadvantage compared to Japan and the European Union, which have agreements with the U.S. for a 15% tariff rate. The move signals a potential shift in U.S. trade policy and could impact global supply chains.
