World News
Trump Raises Tariffs on South Korean Goods to 25%, Escalates Trade Tensions Over Stalled Deal
US President Donald Trump on Monday (local time) announced a sharp hike in tariffs on a wide range of South Korean goods, increasing duties from 15 per cent to 25 per cent, citing delays in the implementation of a proposed bilateral trade agreement.
US President Donald Trump on Monday (local time) announced a sharp hike in tariffs on a wide range of South Korean goods, increasing duties from 15 per cent to 25 per cent, citing delays in the implementation of a proposed bilateral trade agreement.
Announcing the decision on his social media platform Truth Social, Trump said the move was prompted by the South Korean legislature’s failure to enact what he described as a “historic trade agreement.”
“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean tariffs on autos, lumber, pharma, and all other reciprocal tariffs from 15% to 25%,” Trump wrote.
It was not immediately clear whether the revised tariff rates had come into force or when they would be implemented.
Major sectors likely to be hit
South Korea is among the largest exporters to the United States, shipping goods worth approximately $132 billion in 2024, according to US Commerce Department data. Key exports include automobiles, auto parts, semiconductors and electronics, sectors that are now expected to face higher costs due to the increased tariffs.
The latest move marks a reversal of an understanding announced in July, when Trump said the US would impose a uniform 15 per cent tariff on South Korean imports — a rate that was significantly lower than what he had earlier threatened.
As part of that earlier announcement, Trump had claimed that South Korea agreed to provide $350 billion for investments in the United States, to be “owned and controlled by the US” and selected by him as President.
Part of a broader tariff push
The tariff escalation follows several earlier warnings by the Trump administration that were not carried out. These included proposed levies on Canada, potential tariffs on European nations over Greenland-related disputes, and a floated 100 per cent duty on Canadian goods.
Trump’s aggressive trade actions are also facing legal scrutiny. In November, the US Supreme Court heard arguments challenging tariffs imposed by Trump without congressional approval. Several justices raised concerns over whether the president has the authority to unilaterally introduce such measures.
The court has yet to issue a ruling on the matter.
