Trump hikes tariffs on South Korean goods, 25%
US President Donald Trump on Monday announced a sharp increase in tariffs on a range of South Korean goods, accusing Seoul of failing to honor commitments made under a previously agreed trade pact with Washington. The move marks a sudden reversal in what had been presented just months ago as a hard-won breakthrough in US–South Korea economic relations.
In a post on his Truth Social platform, Trump said import taxes would be raised on South Korean autos, lumber and pharmaceutical products, while tariffs on other goods would climb from 15 percent to 25 percent. He blamed the decision on what he described as inaction by South Korea’s legislature. to unmet expectations rather than a provocation.
The announcement comes only months after Washington and Seoul finalized a trade and security agreement following prolonged and tense negotiations. That deal was sealed after Trump met South Korean President Lee Jae Myung in October and was promoted by both sides as a reset in bilateral ties. Under the agreement, South Korea pledged fresh investments in the United States, while Washington agreed to cap tariffs on key South Korean exports, including vehicles, auto parts and pharmaceuticals, at up to 15 percent.
Trump’s latest statement, however, signals a clear about-face. If implemented, the higher tariffs would effectively undo one of the core benefits Seoul secured in the agreement. For South Korea, the stakes are particularly high because of the central role exports play in its economy, and the United States’ position as one of its most important markets.
The auto sector stands to be hit hardest. Automobiles account for around 27 percent of South Korea’s exports to the US, and nearly half of the country’s total car exports are destined for American buyers. Any sharp increase in tariffs would not only squeeze South Korean manufacturers but could also ripple through supply chains, affecting jobs and investment decisions on both sides of the Pacific.
Industry analysts warn that higher tariffs could make South Korean vehicles less competitive in the US market at a time when global competition is already intense. A jump to 25 percent would also place South Korean exporters at a disadvantage compared to rivals from Japan and the European Union, both of which have negotiated arrangements keeping US tariffs at 15 percent. That gap could influence pricing, consumer choices and long-term market share.
The sudden shift has raised questions about predictability in US trade policy. While Trump has long used tariffs as a negotiating tool, the reversal may strain trust with allies who believed the October agreement had settled key disputes. South Korean officials have not yet issued a detailed response, but the announcement is likely to prompt urgent consultations in Seoul, particularly as lawmakers weigh the political and economic costs of Trump’s threat.
For Washington, the move reinforces Trump’s message that trade deals must be fully implemented, not just signed. For Seoul, it underscores how quickly hard-fought compromises can unravel. As markets digest the news, businesses on both sides are left facing renewed uncertainty, wondering whether the tariff hike will become reality or serve as leverage in another round of high-stakes negotiations.