US President Donald Trump said he is raising tariffs on key South Korean imports, including autos, lumber and pharmaceuticals, to 25%, accusing Seoul’s legislature of failing to implement a trade agreement with Washington
| Photo Credit:
Dado Ruvic
President Donald
Trump said on Monday he was increasing tariffs on South Korean
imports into the U.S. related to autos, lumber and
pharmaceuticals to 25%, while accusing the ally’s legislature of
“not living up” to its trade deal with Washington.
“South Korea’s Legislature is not living up to its Deal with
the United States,” Trump wrote on social media.
“Because the Korean Legislature hasn’t enacted our Historic
Trade Agreement, which is their prerogative, I am hereby
increasing South Korean TARIFFS on Autos, Lumber, Pharma, and
all other Reciprocal TARIFFS, from 15% to 25%.”
Timing Unclear
It was not immediately clear when the tariff hike would take
effect.
South Korea’s presidential office and the U.S. Trade
Representative’s office did not respond immediately to requests
for comment. Trump has previously threatened other tariff hikes
and in some cases delayed them or not followed through.
Earlier Deal
South Korea had been working to implement a deal announced
with Washington last year that lowered U.S. tariffs against many
of its exports to 15%.
But earlier this month, South Korea’s finance minister said
the country’s planned investment of $350 billion in strategic
U.S. sectors under the trade deal was unlikely to kick off in
the first half of 2026, citing the weak won currency.
Won Worries
The prospect of large currency outflows has caused
headaches for authorities in Seoul at a time when the won has
slumped to trade at levels unseen since the global financial
crisis from 2007 to 2009.
Trump has used the leverage of tariffs throughout his second
term in office in his foreign policy. Economists have raised
concerns about the approach and the policy also faces a test in
an ongoing case at the U.S. Supreme Court.
Auto Parity
In the deal reached between the allies last year,
Washington and Seoul agreed to set tariffs on U.S. imports of
Korean autos and auto parts at 15%, down from 25%, putting them
on par with their Japanese competitors.
The two countries said last year that as part of the $350
billion South Korean investment into U.S. strategic sectors,
Seoul would pay $200 billion in cash in phased installments that
would be capped at $20 billion a year in an effort to maintain
won stability.
Josh Lipsky, chair of international economics at the
Atlantic Council, said Trump’s action on South Korea reflected
impatience with the pace of Seoul’s enactment of the framework
trade agreement.
“It’s just another reminder that the markets were wrong
to believe we were going to get into tariff stability in 2026,”
Lipsky said. “People say, ‘Oh, but he doesn’t follow through,’
and sometimes that’s true, but sometimes it isn’t. And the
volatility alone – there is a price around that.”
Published on January 27, 2026
