Trump raising tariffs on South Korean imports
President Donald Trump said he was increasing tariffs on South Korean imports of automobiles, lumber and pharmaceuticals to the United States to 25 percent, while accusing the ally’s legislature of failing to comply with its trade deal with Washington.
“The South Korean Legislature is not abiding by its agreement with the United States,” Trump wrote on social media.
“Since the Korean Legislative Assembly has not enacted our Historic Trade Agreement, which is their prerogative, I hereby increase the South Korean Tariffs on Automobiles, Lumber, Pharmaceuticals and all other Reciprocal Tariffs from 15% to 25%.”
It is not yet clear when the tariff increase will come into force.
The South Korean presidential office and the U.S. Trade Representative’s office did not immediately respond to requests for comment. Trump has previously threatened other tariff increases and in some cases delayed or did not follow through on them.
South Korea has been trying to implement a deal announced with Washington last year that would reduce U.S. tariffs on most of its exports to 15 percent.
But earlier this month South Korea’s finance minister said the country’s planned US$350 billion ($A506 billion) investment in strategic US sectors under the trade deal was unlikely to begin in the first half of 2026, citing the weak won currency.
The prospect of massive foreign currency outflows has caused a headache for officials in Seoul at a time when the won has fallen to levels not seen since the global financial crisis of 2007 to 2009.
Trump used the leverage of tariffs in his foreign policy throughout his second term in office. Economists have expressed concerns about this approach, and the policy also faces a test in an ongoing case at the U.S. Supreme Court.
In a deal reached between the allies last year, Washington and Seoul agreed to cut U.S. tariffs on imports of Korean cars and auto parts from 25 percent to 15 percent, bringing them in line with Japanese rivals.
The two countries announced last year that, as part of South Korea’s US$350 billion (US$506 billion) investment in US strategic sectors, Seoul would pay US$200 billion (US$289 billion) in cash in phased installments limited to US$20 billion (US$29 billion) per year to maintain the stability gained.
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