Trump imposes tax hike on Korean imports

International

PRESIDENT Donald Trump has announced a sharp increase in tariffs on South Korean imports to 25%, a move that comes just months after the two nations reached a preliminary trade agreement.

In a social media post on Monday, Jan. 26, the President accused Seoul of failing to live up to the terms of a deal struck in late 2025, specifically citing the slow pace of ratification within the South Korean National Assembly.

According to a BBC report, the hike raises levies from the previous 15% across a broad spectrum of goods, including automobiles, lumber, and pharmaceuticals, marking a return to the administration’s "maximum pressure" trade tactics.

The sudden escalation has sent shockwaves through the global automotive industry, as South Korea’s car exports to the United States reached approximately $30 billion last year. Shares in industry giants Hyundai and Kia plummeted by as much as 6% during early trading in Seoul before clawing back most of those losses as investors speculated the threat might be a negotiating maneuver.

While the U.S. began reducing its tariffs in December as a gesture of good faith, President Trump argued that South Korean lawmakers have not moved with the same urgency to approve the deal, which includes a pledged $350 billion investment into U.S. shipbuilding and energy sectors.

In response, the South Korean government expressed concern over the lack of official notice, stating that Industry Minister Kim Jung-kwan will fly directly from Canada to Washington to seek urgent talks with the U.S. Commerce Secretary Howard Lutnick.

Analysts at firms like Hargreaves Lansdown suggest the markets are currently viewing this latest twist as more of a "carrot than a stick," drawing parallels to the President’s recent decision to back down on European tariff threats regarding Greenland.

However, the move places immense pressure on the National Assembly in Seoul to pass the pending trade legislation by February to avoid a prolonged period of higher duties that would ultimately be paid by U.S. importing firms.(Georgia Olivar, USJ-R Comm Intern)