Trump Raises South Korea Tariffs to 25 Percent

The United States has sharply escalated trade tensions with South Korea after President Donald Trump announced a steep increase in tariffs on Korean imports. The move comes amid accusations that Seoul has failed to honour key commitments under a bilateral trade deal concluded last year.

Details of the Tariff Increase

The Trump administration has raised tariffs on South Korean goods from 15 per cent to 25 per cent. The higher duties apply across a wide range of products, including automobiles, lumber, pharmaceuticals, and what the White House described as “all other reciprocal tariffs”. The decision marks one of the most significant tariff hikes imposed on a major US ally in recent years and signals a tougher enforcement approach to trade agreements.

Background of the US–South Korea Trade Deal

Washington and Seoul reached a $350 billion trade agreement in October 2025. The deal required South Korea to invest heavily in the United States, with a portion of the funds earmarked for strategic sectors such as shipbuilding. President Trump has claimed that while the US moved quickly to reduce its own tariffs as agreed, South Korean lawmakers have been slow to approve and implement the commitments made under the arrangement.

South Korea’s Response and Diplomatic Moves

South Korea’s presidential office said it was not informed in advance about the tariff hike. President Lee Jae-myung’s office stated that Trade Minister Kim Jung-kwan, currently in Canada, would travel to Washington for urgent talks with US Commerce Secretary Howard Lutnick. Seoul has maintained that the deal does not require parliamentary ratification, arguing it is a memorandum of understanding rather than a legally binding treaty.

Important Facts for Exams

• The US–South Korea trade deal announced in October 2025 is valued at $350 billion.
• Tariffs have been raised from 15% to 25% on multiple South Korean export categories.
• Trade agreements can take the form of memorandums of understanding, not always treaties.
• Tariffs are a key instrument of trade policy and economic diplomacy.

Legal Debate Over Trump’s Tariff Powers

Separately, the Supreme Court of the United States has deferred ruling on a legal challenge to the Trump administration’s use of emergency powers to impose sweeping global tariffs. Importers argue that the president exceeded his authority by imposing country-specific tariffs without explicit congressional approval. The court has not indicated when it will revisit the case, leaving uncertainty over the legal foundations of current US trade actions.