President Donald Trump announced Monday a new round of tariffs on goods imported from South Korea, increasing duties on autos, pharmaceuticals, and lumber from 15% to 25%. The action comes in response to a delay in the South Korean legislature’s approval of a trade deal initially reached with the United States last summer.
Tariff Increase Explained
According to a post on Truth Social, President Trump stated, “South Korea’s Legislature is not living up to its Deal with the United States.” He further noted that he and President Lee Jae Myung reached an agreement on July 30, 2025, and reaffirmed the terms during a meeting in Korea on October 29, 2025. The President indicated the tariff increase is a direct consequence of the Korean legislature’s inaction.
Reuters reported that South Korea’s presidential Blue House stated the U.S. government had not formally notified them of the tariff increase. The Blue House also indicated a presidential advisor would convene with relevant ministries to discuss a response.
Potential Implications
South Korea is a major exporter to the United States, and Hyundai Motor is currently the largest importer of new vehicles from South Korea. The increased tariffs could impact the cost of these goods for American consumers and potentially disrupt existing trade relationships. The U.S. Supreme Court recently heard arguments regarding the legality of unilaterally imposed tariffs, but has not yet issued a decision.
In the July trade deal, President Trump had initially proposed tariffs of 15% on all imports from South Korea, later reducing that figure by 10 percentage points. At that time, he also stated South Korea had agreed to $350 billion in U.S.-directed investments.
Frequently Asked Questions
What prompted the increase in tariffs?
The increase in tariffs was prompted by a delay in the South Korean legislature’s approval of a trade deal reached with the United States on July 30, 2025, and reaffirmed on October 29, 2025.
Which goods are affected by the new tariffs?
The new tariffs affect imported autos, pharmaceuticals, and lumber from South Korea, increasing duties from 15% to 25%.
Has South Korea officially been notified of the tariff increase?
According to Reuters, South Korea’s presidential Blue House stated that the U.S. government had not officially notified them of the tariff hike as of Monday.
How might this situation evolve as both countries consider their next steps?
