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| U.S. President Donald Trump, right, speaks during a meeting with South Korean President Lee Jae Myung in the Oval Office of the White House, Monday, Aug. 25, 2025, in Washington. | Photo Credit: AP |
WASHINGTON - President Donald Trump announced Monday he would raise tariffs on South Korean imports from 15% to 25%, accusing Seoul's legislature of failing to ratify a trade agreement negotiated between the two countries last year.
The tariff increase targets a range of South Korean goods including automobiles, lumber, and pharmaceuticals, potentially disrupting one of America's key trade relationships in Asia.
"South Korea's Legislature is not living up to its Deal with the United States," Trump wrote on his Truth Social platform, explaining he was raising tariff rates "because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative."
Seoul Caught Off Guard
South Korea's presidential office said it received no advance notice of the tariff plans. Trade Minister Kim Jung-kwan, currently in Canada, will travel to Washington for emergency talks with U.S. Commerce Secretary Howard Lutnick.
The announcement represents a dramatic reversal from just months ago, when Trump and South Korean President Lee Jae Myung finalized a trade and security deal in October following tense negotiations. That agreement included South Korean investment commitments alongside U.S. tariff reductions.
However, the deal has remained in legal limbo. Seoul's presidential office insisted in November that parliamentary approval wasn't required, characterizing the agreement as a memorandum of understanding rather than a binding treaty.
High Stakes for Korean Auto Industry
The automotive sector accounts for 27% of South Korea's exports to the United States, which absorbs nearly half the country's total vehicle exports. The original October deal had lowered U.S. tariffs on Korean cars from 25% to 15%—a reduction Trump now threatens to reverse.
If implemented, the higher tariffs could disadvantage South Korean exporters compared to competitors from Japan and the European Union, both of which have secured 15% tariff rates through their own agreements with Washington.
The Trump administration has not yet issued formal notices to enact the changes.
Legislative Response
South Korea's ruling party responded Tuesday by pledging to expedite passage of five pending bills that would enable implementation of U.S. investments. A Democratic Party spokesperson said officials are working to clear up any misunderstanding with the Trump administration.
Part of Broader Trade Offensive
The threat against South Korea comes amid a flurry of tariff announcements from Trump targeting key trading partners. Over the weekend, he warned Canada of 100% tariffs if it strikes a trade deal with China. Earlier this month, he threatened multiple European nations with tariffs until his proposed purchase of Greenland is achieved, though he has since backed away from that threat.
The moves signal Trump's continued reliance on tariff threats as a primary tool of economic diplomacy, even with longstanding allies.
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