(WASHINGTON, 2026-01-27 11:56:00) –
President trump announced plans to raise tariffs on imports from South Korea to 25%, escalating trade tensions with a key ally.
- President Trump said South Korean lawmakers have been slow to approve a trade deal reached last October.
- The proposed tariffs would increase levies on a range of products, including automobiles, lumber, and pharmaceuticals.
- South Korea’s Industry Minister kim Jung-kwan is scheduled to visit washington to meet with U.S. Commerce secretary Howard Lutnick.
President Donald Trump announced he is raising tariffs on South Korean imports to 25%, accusing Seoul of not fulfilling commitments made in a trade agreement reached last year. The proclamation, made via social media, threatens to disrupt a key economic partnership and further complicates global trade relations.
Trump stated that the increased levies, up from 15%, will apply to a variety of products, including automobiles, lumber, pharmaceuticals, and “all other Reciprocal TARIFFS,” according to his social media post. He claimed South Korean lawmakers have been slow to ratify the deal, while the U.S. has “acted swiftly to reduce our TARIFFS in line with the Transaction agreed to.”
south korea Responds
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South Korea’s government stated it had not received official notification of the tariff increase and requested urgent talks with Washington to address the issue. South korea’s Industry Minister kim Jung-kwan, currently in Canada, will travel to Washington “quickly” to meet with U.S. Commerce Secretary Howard Lutnick, according to the government.
Economic Impact
Last year, South Korea exported approximately $123 billion (£90 billion) worth of goods to the U.S.,making it the second-largest export market after China. Car exports accounted for roughly $30 billion of that total. Initial market reaction saw shares in korean automakers Hyundai and Kia fall as much as 6%, but thay later recovered to close down about 1%. South Korea’s benchmark Kospi stock index also reversed early losses, ending the day up 2.7%.
Skepticism and Precedent
Analysts expressed skepticism about whether the tariff increase would actually be implemented, pointing to Trump’s previous reversals on trade threats.”With a delegation on its way from Seoul to Washington, markets are viewing this latest twist as more carrot than stick,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
The deal reached between Seoul and Washington last October included a pledge from South Korea to invest $350 billion (£256 billion) in the U.S., with a portion allocated to shipbuilding. The following month, the two countries agreed the U.S. would reduce tariffs on some products once South Korea began the approval process. The agreement was submitted to South Korea’s National Assembly on November 26 and is expected to be passed in February, local media reports indicate.
Trump’s Tariff Strategy
Trump has frequently used tariffs as a tool to advance his foreign policy objectives. He recently threatened Canada with a 100% tariff if it pursued a trade agreement with China, and previously threatened import taxes on eight countries, including the UK, over their opposition to U.S. plans regarding Greenland. He later backed down from the Greenland tariff threat, but the episode strained relations with Denmark and other NATO allies.
Tariffs are paid by companies importing products, meaning U.S. firms would be responsible for a 25% tax on goods purchased from South Korea.
