Trump Raises Tariffs on South Korean Goods Over Trade Deal Dispute

U.S. President Donald Trump has announced a fresh increase in tariffs on a range of South Korean imports, accusing Seoul of failing to honor commitments made under a trade agreement reached last year. The move raises tariff rates from 15% to 25%, marking a significant escalation in trade tensions between the two long-standing allies.

Key Highlights

• Trump raises tariffs on South Korean goods, citing Seoul’s failure to implement last year’s trade agreement.
• Tariff hike heightens trade tensions, impacting key South Korean export sectors and global market sentiment.

The higher tariffs will apply to key South Korean export sectors, including automobiles, lumber, pharmaceuticals, and other goods that fall under reciprocal tariff arrangements. Trump stated that South Korea’s National Assembly has not formally enacted or approved the trade deal negotiated in 2025, which he had previously described as a “historic” agreement aimed at strengthening bilateral economic ties.

According to Trump, the United States had already taken steps to lower its tariffs in line with the agreement, but the lack of corresponding legislative action in South Korea has prompted Washington to reinstate higher duties. He publicly criticized South Korea’s lawmakers, arguing that their delay undermines the spirit and substance of the deal and leaves the U.S. with little choice but to respond through tougher trade measures.

The original agreement reportedly included substantial commitments from South Korea, such as a $350 billion investment pledge in the United States and plans to purchase large volumes of U.S. energy products. However, South Korean officials have maintained that the arrangement was structured as a memorandum of understanding rather than a formal treaty, creating uncertainty over whether parliamentary ratification is legally required.

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Financial markets reacted swiftly to the announcement, with shares of major South Korean automakers and pharmaceutical companies initially declining before stabilizing. The Korean won also weakened, reflecting investor concerns over the potential impact on exports and broader economic relations.

The tariff hike underscores Trump’s continued reliance on aggressive trade policies during his second term, as he seeks to pressure trading partners to deliver on negotiated commitments. Analysts warn that the move could strain U.S.–South Korea relations and add further volatility to global trade at a time of already heightened geopolitical and economic uncertainty.