US President, Donald Trump has announced that he is increasing tariffs on South Korean exports, citing the failure of South Korea’s legislature to enact what he described as a “Historic Trade Agreement.”

In a post on Truth Social, Trump said “because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative,” he is “hereby increasing” tariffs from 15 percent to 25 percent, referring to the failure of South Korea’s legislature to ratify the trade pact struck between Washington and Seoul last year.

Trump announced that the higher tariff rate would apply to automobiles, lumber and pharmaceutical products, as well as any goods covered under his baseline “reciprocal” tariff.

The statement framed the decision as both a consequence of South Korea’s domestic political choices and an assertion of US trade leverage.

“South Korea’s Legislature is not living up to its Deal with the United States. Why hasn’t the Korean Legislature approved it?”
Donald Trump

It’s unclear when the new tariffs would take effect. The US and South Korea announced a framework trade deal in July, under which Trump agreed to lower his reciprocal tariff on South Korean goods from 25 percent to 15 percent.

Trump agreed to extend the 15 percent tariff rate to South Korean auto exports following his summit with South Korean President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Gyeongju, South Korea, in October.

Under the agreement, Seoul agreed to invest $350bn in key US industries, including semiconductors and shipbuilding.A related bill drafted by Lee’s Democratic Party has been pending in the National Assembly since November.

Trump’s trade salvoes have been a major concern for South Korea’s economy, which is heavily dependent on exports and has faced flagging growth in recent years.The South Korean economy grew 1 percent in 2025 after contracting 0.3 percent in the final quarter.

That was the weakest performance for Asia’s fourth-largest economy since 2020, when the COVID-19 pandemic brought much economic activity to a grinding halt.

South Korea’s exports accounted for about 44 percent of gross domestic product (GDP) in 2024, well above the OECD average of 30 percent.

Despite Trump’s tariffs sapping demand for South Korean automobiles and machinery, South Korea counts the US as its top export destination after China. South Korean exports to the US came to $122.9bn in 2025, about 17 percent of the total, an on-year decline of 3.8 percent.

Trump’s announcement follows a string of recent tariff threats, including a 100% tariff on Canadian goods and an additional 10% levy on countries opposed to his Greenland ambitions, the latter of which he walked back.

The announcement also underscores Trump’s long-standing preference for tariffs as a tool to pressure trading partners and rebalance what he has repeatedly characterised as unfair trade relationships.

Trump has argued that tariffs protect American industries, encourage domestic production, and force foreign governments to offer more favourable terms to the United States.

South Korea To Respond Calmly To Trump Tariff Hike

Meanwhile, presidential Spokesperson Kang Yoo-jung said in a statement that Seoul plans to “respond calmly” and convey “its willingness to fulfill the tariff agreement” to the US.

Kim Yong-beom, Director of national policy, is said to convene a meeting today to discuss Trump’s announcement.

South Korean Minister of Trade Kim Jung-Kwan, who is currently in Canada, will also travel to the US immediately to hold talks with US Secretary of Commerce Howard Lutnick. Yeo Han-koo will also travel to the US to hold consultations with US Trade Representative Jamieson Greer.

It is obvious South Korea’s government seeks to address the tariff increase through diplomatic channels. Nonetheless, Trump’s post has set a clear marker that failure to finalise trade commitments, even for internal political reasons, will carry tangible economic consequences under his administration.