US President Donald Trump has reportedly announced an increase in tariffs on South Korean imports from 15% to 25%. This move marks a significant reversal of a previous agreement reached in late 2025 and targets several major industries vital to the South Korean economy.
In line with Trump’s remarks, this is because the South Korean parliament did not formally ratify the landmark agreement between the United States and Korea reached in July last year.
According to a recent post on social media, Trump has confirmed that he would increase tariffs on South Korean imports to 25% after accusing Seoul of “not living up” to a trade deal reached last year.
The recent announcement will seek to increase tariffs on South Korea from 15% to 25% across a wide range of products including automobiles, pharmaceuticals, lumber, and all other reciprocal categories.
South Korea states it has not yet received official notification of the decision to increase tariffs. Consequently, Seoul is calling for urgent talks with Washington to address the escalation of trade tensions.
Trade between the United States and South Korea was significant in 2024, with South Korea exporting goods approximately $132 billion to the US.
Among the largest imports were cars, autoparts, semiconductors and electronics. As tariffs increase, these goods could become more expensive. The US administration has specified the effective date for the new tariff hikes.
On January 17, the US president officially announced a 10% tariff- effective February 1-on goods from eight European countries that supported Greenland amid the ongoing annexation dispute. These measures are set to remain until the United States secures a deal to acquire the island. In response, the European Union has been negotiating the Turnberry Agreement, a major framework intended to de-escalate trade tensions and address the President’s recent ultimatum.
The recent announcement of increased tariffs could have adverse effects on imported goods from South Korea, specifically automobiles, cars parts, and pharmaceuticals. These costs will be likely to be reflected in US consumer pricing and disrupt integrated supply chains. Such moves will lead to higher expenses for consumers and businesses and are already sparking strong reactions from international trading partners.
According to the BBC, Seoul and Washington reached a deal last October, which included an assurance from South Korea to invest $350bn in the US, a portion of which is dedicated to shipbuilding. Both countries agreed that the US would reduce tariffs on some products once South Korea initiated the process to ratify the deal.
As reported by the local media, the agreement was submitted to South Korea's National Assembly on November 26 and is currently under review.
Against this backdrop, questions remain as to whether further negotiations between the US administration and its allies are possible. Nonetheless, these developments will be crucial for the global economy and currency markets as they unfold in the coming months.