In brief
In a recent announcement, President Trump declared a hike in tariffs on South Korean imports from 15% to 25%, citing failure to meet trade deal commitments. The decision affects various sectors, including automobiles and pharmaceuticals. South Korea's government responded by demanding urgent discussions and stated that it had not received formal notification regarding the tariff raise, as they await a pending agreement before their National Assembly due for review next month.
US President Donald Trump has announced he is raising tariffs on South Korean imports to 25% after accusing Seoul of not living up to a trade deal reached last year.
In a post on social media, Trump said he would increase levies on South Korea from 15% across a range of products including automobiles, lumber, pharmaceuticals and all other Reciprocal TARIFFS.
He further stated that South Korean lawmakers have been slow to approve the agreement while we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to.
In response, South Korea expressed that it had not received official notice of the decision to hike tariffs and called for urgent talks with Washington on the matter.
South Korea's Industry Minister, currently visiting Canada, is expected to travel to Washington for discussions with US Commerce Secretary Howard Lutnick.
The countries reached a trade agreement last October, which involved South Korea pledging to invest $350 billion in the US, targeting various sectors including shipbuilding. This agreement is under review by South Korea's National Assembly.
This tariff change means US companies will pay a 25% tax on imported goods from South Korea, affecting numerous industries reliant on these products.
Historically, Trump has leveraged tariffs as a tool for foreign policy during his tenure, recently making headlines for threatening further tariffs on Canada over its relationship with China.
Before this incident, Trump had previously warned of import taxes on several countries in response to resistance regarding US claims over Greenland, aggravating ties with NATO allies.
