US President Donald Trump has announced an increase in tariffs on imports from South Korea, raising duties to 25% after accusing Seoul of failing to fully comply with a trade agreement reached last year.
In a post on social media, Trump said the tariffs would be increased from the current 15% and would apply to a wide range of products, including automobiles, lumber, pharmaceuticals, and other reciprocal tariffs. He claimed that while the United States had acted quickly to reduce its own tariffs under the agreement, South Korea had been slow to implement its commitments.
“The South Korean lawmakers have not lived up to the transaction agreed to,” Trump said, adding that Washington had moved swiftly while Seoul delayed approval of the deal.
Meanwhile, South Korea stated that it had not received any official notice regarding the tariff hike. The government said it is seeking urgent talks with the United States to clarify the issue and prevent further trade tensions.
Analysts warn that the move could strain US–South Korea trade relations and may have broader implications for global markets if the dispute escalates.
According to official data, South Korea exported goods worth around $123 billion (£90 billion) to the United States last year, making it the country’s second-largest export market after China. Automobile exports accounted for approximately $30 billion of that total.
Following Trump’s announcement, shares in South Korean carmakers Hyundai and Kia initially fell by as much as 6%, reflecting investor concerns. However, the losses were later pared back, with both stocks closing about 1% lower.
South Korea's benchmark Kospi stock index also reversed early losses to end the day up 2.7%.
Analysts said markets were sceptical that the threatened tariff increase would ultimately be implemented. They pointed to Trump’s recent U-turn on imposing additional tariffs on European trade partners, following opposition linked to US plans to acquire Greenland.
Seoul and Washington reached the trade agreement in October last year, which included a pledge from South Korea to invest $350 billion (£256 billion) in the US, with part of the investment earmarked for shipbuilding. The following month, the two sides agreed that the US would reduce tariffs on certain products once South Korea began the approval process.
The agreement was submitted to South Korea’s National Assembly on 26 November and is currently under review. According to local media, it is likely to be approved in February.
Trump has frequently used tariffs as a tool of foreign policy during his second term in the White House. On Saturday, he threatened Canada with a 100% tariff if it struck a trade deal with China.
On Monday, Chinese officials said their “strategic partnership” with Canada was not intended to undermine other countries. Canadian Prime Minister Mark Carney responded by saying Canada was not pursuing a free trade deal with China and had “never” considered one, adding that Ottawa had made its position clear to US officials.E
arlier, Trump also warned he would impose import taxes on eight countries, including the UK, that opposed US plans to seize Greenland, an autonomous territory within the Kingdom of Denmark and a member of Nato.
He later backed down from the tariff threat, citing progress towards a “future deal” over the island, though the episode strained US relations with Denmark and other Nato allies.