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President Donald Trump announced a 10% tariff increase on South Korean imports arriving in the U.S., including cars, lumber, and pharmaceutical products. Trump stated that the South Korean legislature has failed to act swiftly and confirm the bilateral trade agreement reached in November.
Trump Raises Tariffs on South Korean Imports, Says Korea Is Not ‘Living up to Its Deal’
President Trump is using tariffs once again, this time against South Korea, an ally that holds a trade relationship of over $160 billion with the U.S.
On Truth Social, Trump’s trademark social network, the president stated that South Korea has not completed its part of the deal regarding the trade agreement reached in November, when both countries agreed to reduce tariffs on U.S. imports of cars and auto-parts from 25% to 15%.
The deal also included $350 billion in South Korean investment into the different U.S. industry sectors.
Trump declared:
South Korea’s Legislature is not living up to its Deal with the United States. President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn’t the Korean Legislature approved it?
Due to the delay in enacting this “historic” trade agreement, Trump said he would increase the tariffs on Korean cars, lumber, and pharmaceutical products from 15% to 25%, the same levels set before the agreement.
“Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to. We, of course, expect our Trading Partners to do the same.” Trump highlighted.
Shares of Korean automakers, like Hyundai and Kia, dropped after Trump’s statements.
Before, Trump had threatened to impose tariffs of 100% on all Canadian products entering the U.S. if the Canadian government signed a free trade agreement with China, a possibility ruled out by Prime Minister Marc Carney.
Trump also threatened to impose 10% tariffs on all products coming from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland – nations opposing the annexation of Greenland – to the U.S. Nonetheless, he later withdrew this threat, as he announced that the U.S. had reached an agreement with NATO regarding the future of the island.
Read more: Trump Flip‑Flops on Canada’s China Trade Deal, Threatens 100% Tariffs if It Passes
FAQ
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What recent action has President Trump taken regarding South Korea?
President Trump has announced increased tariffs on South Korean imports due to delays in legislative approval of a trade agreement. -
What was included in the U.S.-South Korea trade agreement?
The agreement aimed to reduce tariffs on U.S. auto imports from 25% to 15% and included $350 billion in South Korean investments into U.S. industries. -
What tariffs will be affected by Trump’s announcement?
Tariffs on Korean cars, lumber, and pharmaceuticals will rise from 15% to 25%, reverting to pre-agreement rates. -
How did the market react to Trump’s statements?
Following his announcement, shares of South Korean automakers, such as Hyundai and Kia, experienced a significant drop.