Trump Hikes Tariffs On South Korean Goods To 25%, Citing Trade Deal Dispute

Last Updated:January 27, 2026, 06:55 IST

Trump first announced a breakthrough trade agreement with South Korea's president in July but negotiations dragged on for months.

US President Donald Trump | File Image

US President Donald Trump announced that he is raising tariffs on South Korean imports to 25%, up from 15%, blaming Seoul’s legislature for failing to ratify a trade agreement reached last year.

“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%," Trump declared in a post on his social media platform Truth Social.

South Korea ranks among America’s top 10 trading partners, with US companies and consumers importing nearly $150 billion worth of Korean goods annually- from automobiles and electronics to pharmaceuticals and lumber.

What Happened To Trade Deal Between US And South Korea?

Trump first announced a breakthrough trade agreement with South Korea’s president in July but negotiations dragged on for months over disagreements on US-backed investment commitments. The deal was finally sealed in October during Trump’s Asia tour, when he and South Korean President Lee Jae Myung agreed to a framework that included Seoul’s pledge to invest $350 billion in the United States. In November, both governments released a joint fact sheet detailing implementation steps. The agreement had lowered tariffs on both sides, capping US duties on Korean imports at 15%- a reduction from the 25% rate Trump had announced on his self-declared “Liberation Day" in April, which sent global markets into turmoil.

Trump’s aggressive trade strategy has been marked by numerous tariff threats- many of which never materialized. Recent examples include a proposed 10% duty on Canadian imports following an anti-tariff advertisement in Ontario, threatened tariffs on European nations over Greenland and a 100% tariff on Canada floated just last weekend.

Trump has openly acknowledged using tariffs as diplomatic weapons as last week, he admitted imposing higher duties on Switzerland simply because its president “rubbed me the wrong way."

The legality of Trump’s sweeping tariff agenda is currently under review by the US Supreme Court.

News world Trump Hikes Tariffs On South Korean Goods To 25%, Citing Trade Deal Dispute

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