Economy

Trump announces tariff hike on South Korea to 25% citing legislative delays

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Jan 27, 2026

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President Trump announced on Monday via social media that he is increasing tariffs on imports from South Korea from 15% to 25%. The higher duties will apply to automobiles, lumber, and pharmaceutical goods. The president stated the measure is a response to the South Korean legislature's failure to approve a trade agreement reached the previous year.

According to the president, he and South Korean President Lee Jae-myung finalized the deal in July 2025 and reaffirmed it in October. The pact reportedly involved South Korea investing $350 billion in U.S. sectors such as semiconductors, shipbuilding, and biotechnology, in exchange for the U.S. reducing tariffs at that time. Trump questioned why the legislature had not yet ratified the terms.

In response, South Korea’s ruling Democratic Party pledged to pass a special act regarding the investment management by the end of February. A spokesperson for the party emphasized the need to confirm the U.S.'s intent and correct misunderstandings. The South Korean presidential office convened a meeting to discuss the situation, though officials initially noted they had not received formal notification from the U.S. government. The country's trade ministry stated that Industry Minister Kim Jung-kwan plans to visit Washington for talks on the matter.

Following the announcement, shares of South Korean automakers Hyundai and Kia declined in trading. The legality of the administration's tariffs is currently under review by the U.S. Supreme Court, which heard arguments regarding the president's authority to levy such duties without congressional approval late last year.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• Response to legislative delays President Trump cited the South Korean legislature's failure to approve a previously reached trade agreement as the primary reason for the tariff increase. The President noted that while he and South Korean President Lee Jae-myung finalized the deal in July 2025 and reaffirmed it in October, the legislature has not yet ratified the terms.

• Enforcement of investment commitments The administration highlighted that the existing pact involved a commitment from South Korea to invest $350 billion in U.S. sectors, including semiconductors, shipbuilding, and biotechnology. These significant investments were agreed upon in exchange for the United States reducing tariffs at that time.

• Implementation of higher duties Consequently, the President announced an increase in tariffs on South Korean imports from 15% to 25%. These higher duties will specifically target automobiles, lumber, and pharmaceutical goods as a direct countermeasure to the stalled ratification process.

How it may affect me

As a U.S. reader:

• Consumers could see price increases for South Korean imports, including automobiles, lumber, and pharmaceuticals, due to the tariff hike from 15% to 25%.

• The dispute creates uncertainty surrounding $350 billion in pledged investments for U.S. semiconductor, shipbuilding, and biotechnology sectors intended to boost domestic industries.

• Ongoing trade policy enforcement remains uncertain pending a U.S. Supreme Court ruling on the president's authority to levy such tariffs without congressional approval.

• Diplomatic efforts could alter these measures soon, as South Korean officials plan to visit Washington and aim to pass related legislation by the end of February.

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