US President Donald Trump announced a possible increase in tariffs on South Korean goods to 25%, explaining that this is due to the South Korean parliament’s delay in approving a bill that is meant to solidify last year’s trade agreement between the countries. Currently, tariffs on imports from South Korea stand at 15%.
This is reported by Finway
Potential Impact on Key Export Industries
In his address, Donald Trump noted that the tariff increase could affect a wide range of products, including automobiles, timber, pharmaceuticals, and other goods. The President emphasized that the United States has already fulfilled its obligations by lowering its own tariffs and now expects similar actions from Seoul.
“The US has already fulfilled its part of the agreements by lowering its own tariffs and expects similar steps from Seoul.”
Following this announcement, markets reacted immediately: Hyundai’s shares on the Seoul exchange fell by more than 6%, as the company exported over 1.1 million cars to the US in 2024. The decline was later partially corrected as investors viewed Trump’s statement primarily as a political signal. Meanwhile, officials in South Korea emphasized that no official clarifications had yet been received from Washington.
Seoul’s Reaction and Next Steps
The South Korean government quickly convened an interagency meeting and began preparations for urgent consultations in the US. Leaders of the ministries of trade and industry plan to visit Washington soon for negotiations.
The main cause of tension remains the strategic investment bill from the US, aimed at ensuring the fulfillment of agreements regarding significant investments in the American economy. The document was submitted to parliament back in November, but has yet to receive priority consideration. Experts point out that such statements from the US president are often used as a tool for political pressure — in recent years, only about 25% of such threats have been fully realized. However, a potential increase in tariffs could significantly impact one of South Korea’s main export markets, as the US accounts for over 17% of its external supplies.