US President Donald Trump has announced that he is raising tariffs on South Korean imports to 25%, accusing Seoul of “not living up” to a trade deal reached last year.
In a social media post, Trump said he would increase levies on South Korea from 15%, covering a range of products including automobiles, lumber, pharmaceuticals, and “all other Reciprocal TARIFFS.”
Trump claimed that South Korean lawmakers have been slow to approve the deal while the US “acted swiftly to reduce our tariffs in line with the transaction agreed to.”
South Korea stated that it had not received official notice of the decision and called for urgent talks with Washington.
The country added that its Industry Minister Kim Jung-kwan, currently in Canada, will visit Washington as soon as possible to meet US Commerce Secretary Howard Lutnick.
Shares in some South Korean exporters fell on Tuesday morning, with car maker Hyundai down about 2.5%. Stocks related to pharmaceuticals and timber also declined.
Seoul and Washington reached a deal last October, which included a pledge from South Korea to invest $350 billion (£256 billion) in the US, with some investment planned for shipbuilding.
The following month, the two countries agreed that the US would reduce tariffs on some products once South Korea began the process of approving the deal.
The agreement was submitted to South Korea’s National Assembly on 26 November and is currently under review. Local media report that it is likely to be passed in February.
Tariffs are paid by companies importing products. In this case, US firms will pay a 25% tax on goods purchased from South Korea.
Trump has frequently used tariffs as leverage to enact foreign policy during his second term in the White House.
On Saturday, he threatened Canada with a 100% tariff if it struck a trade deal with China.
On Monday, Chinese officials said their “strategic partnership” agreement with Canada is not meant to undercut other countries.
Canadian Prime Minister Mark Carney said Canada was not pursuing a free trade deal with China and had “never” considered it. He added that Canadian officials had made their position clear to their American counterparts.
Earlier, Trump said he would impose import taxes on eight countries—including the UK—that opposed US plans to seize Greenland, an autonomous territory in the Kingdom of Denmark and a member of NATO.
He later backed down from the tariff threat over Greenland, citing progress towards a “future deal,” but the episode strained US relations with Denmark and other NATO allies.
