Key Points
- President Trump has increased tariffs on South Korean imports from 15% to 25%. The new tariffs apply to autos, lumber, and pharmaceuticals.
- Trump accused the South Korean legislature of “not living up” to a recent trade deal.
- The move comes as South Korea is investigating the U.S.-based company Coupang over a data breach.
- The tariff hike is the latest example of Trump using trade as a foreign policy tool.
President Donald Trump has announced a major tariff hike on South Korean imports, raising the rate from 15% to 25% on key goods like cars, lumber, and pharmaceuticals. In a social media post on Monday, Trump accused the South Korean legislature of “not living up” to a trade agreement that the two countries had reached.
“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS,” Trump wrote.
The move is a significant escalation in a relationship that has been under strain lately. The two countries had announced a deal in November that was supposed to lower U.S. tariffs on South Korean exports. It’s not clear exactly what part of that deal Trump is referring to, but the new tariffs are a clear sign of his frustration.
South Korea has also been trying to explain to Washington its ongoing investigation into the U.S.-based e-commerce company Coupang, which suffered a massive data breach. This investigation may have also contributed to the president’s ire.
This is the latest in a long series of moves by Trump to use tariffs as a tool of foreign policy. The approach has been criticized by many economists and is currently being challenged in a case at the U.S. Supreme Court.
For now, the new 25% tariff on South Korean goods is set to go into effect, adding another layer of uncertainty to the global trade landscape. The South Korean government has not yet issued a response.
