Trump says he is raising tariffs on certain South Korean imports to 25%

• Tariffs increased from 15% to 25% on South Korean autos, lumber, pharmaceuticals, and other 'reciprocal' items
• South Korea had been working to finalize a trade agreement announced in November that would lower U.S. tariffs on its exports
• Trump has consistently used tariff threats as a foreign policy tool during his second term, though economists have raised concerns about this approach

Summary: Trump Raises Tariffs on South Korean Imports to 25%

President Trump announced on January 26 that he is increasing tariffs on certain South Korean imports from 15% to 25%, targeting autos, lumber, pharmaceuticals, and other products. The tariff hike represents a significant escalation in trade tensions with the key U.S. ally.

Key Details

Trump justified the decision by accusing South Korea's legislature of "not living up" to its trade agreement with the United States. He stated that because Korea's legislature "hasn't enacted our Historic Trade Agreement," the tariff increase was necessary. The affected sectors—automotive, lumber, and pharmaceuticals—represent major South Korean export categories to the U.S.

South Korea's presidential office did not immediately comment on the announcement. The country had previously been working on a trade deal announced in November that would have lowered U.S. tariffs on Korean exports. Recent diplomatic discussions also involved explaining Seoul's investigation into a U.S.-based e-commerce company following a mass data leak.

Market Implications

This tariff increase will significantly impact South Korean exporters, particularly major automakers like Kia Motors. The move continues Trump's pattern of using tariffs as a foreign policy tool throughout his second term, raising concerns among economists about the broader economic impact.

The policy faces scrutiny, with an ongoing case at the U.S. Supreme Court testing the administration's tariff authority. The 10-percentage-point increase could affect trade flows and supply chains between the two nations, potentially disrupting bilateral commerce valued at billions of dollars annually.