Donald Trump has pledged to increase tariffs on South Korean goods to 25%, reversing concessions made in a trade agreement he claims Seoul has failed to properly implement. The president’s social media announcement specifically criticized South Korea’s legislature for not enacting the bilateral trade framework negotiated in 2024.
The threatened tariff increase would affect major Korean export sectors, particularly automotive manufacturing which accounts for more than a quarter of South Korean exports to the United States. Financial markets responded with concern, sending shares in Korean carmakers down sharply before they recovered some losses later in the trading session.
South Korea’s government disputes the characterization of its obligations, maintaining that the October 2024 agreement was structured as a memorandum of understanding rather than a binding treaty requiring legislative ratification. However, the ruling party is now working with opposition lawmakers to pass five bills that would enable the promised investments in America.
The diplomatic dispute highlights tensions between the presidential office’s legal interpretation and Trump’s expectations for the trade deal. While Korean officials insist they received no advance warning of the tariff threat, they are scrambling to respond with emergency consultations in Washington.
This latest tariff threat exemplifies Trump’s continued reliance on trade policy as a central foreign policy tool, following similar recent warnings to Canada and European nations. International trade experts express concern that the unpredictability undermines stable business planning and creates unnecessary economic volatility.
Trump Promises 25% Tariff Hammer on South Korea Over Legislative Inaction
