Trump Hikes Tariffs on South Korean Imports to 25%, Escalating Trade Tensions

President Donald Trump has announced a sharp increase in U.S. tariffs on South Korean imports, raising duties to 25% and accusing Seoul of dragging its feet on implementing a trade deal reached last year.

The decision, disclosed in a post on social media, marks the latest escalation in Trump’s second-term trade strategy and has prompted urgent diplomatic outreach from Seoul.

Trump said the United States had already reduced its own tariffs “as agreed,” but claimed South Korea had been slow to honour its commitments. The hike affects a wide range of imports, including automobiles, lumber, pharmaceuticals, and what Trump described broadly as “all other Reciprocal TARIFFS.”

South Korea’s government responded that it had not received formal notification and immediately requested emergency talks. Industry Minister Kim Jung-kwan, who is currently on a trip to Canada, will travel to Washington to meet U.S. Commerce Secretary Howard Lutnick to seek clarification.

South Korea’s Kospi index dipped briefly after the announcement but rebounded later in the day to trade about 1.8% higher, as shares of major exporters stabilised.

Background: The Trade Deal Under Review

The tariff spike comes less than three months after the two countries reached a trade agreement in October 2025, under which South Korea pledged to invest $350 billion in the United States, including major shipbuilding commitments.
In November 2025, both governments agreed the U.S. would lower tariffs once South Korea began formal parliamentary review of the deal.

The agreement was submitted to South Korea’s National Assembly on November 26, 2025, and is expected to pass in February 2026, according to local media.

The tariff increase—paid by U.S. businesses importing South Korean products—is expected to raise domestic costs on key sectors such as autos and electronics.

Trump’s Tariff Strategy in Context

Tariffs have become a central tool of Trump’s foreign policy in his second term. Recent examples include:

• Threatening 100% tariffs on Canada over concerns about a rumoured trade deal with China.
• Imposing tariffs on eight countries, including the UK, that criticised U.S. proposals to acquire Greenland, before dialling back after progress toward a “future deal.”

These actions have strained U.S. ties with several allies, including Denmark and other NATO partners.

South Korea—whose export-driven economy depends heavily on the U.S. market—warns the tariff spike could impact its key sectors, particularly automobiles, shipbuilding, and electronics.