WASHINGTON: US President Donald Trump mentioned on Monday (Jan 26) he was growing tariffs on South Korean imports into the US associated to autos, lumber and prescription drugs to 25 per cent whereas accusing the ally’s legislature of “not residing up” to its commerce cope with Washington.
“South Korea’s Legislature is just not residing as much as its cope with the US,” Trump wrote on social media.
“As a result of the Korean Legislature hasn’t enacted our Historic Commerce Settlement, which is their prerogative, I’m hereby growing South Korean tariffs on autos, lumber, pharma, and all different reciprocal tariffs, from 15 per cent to 25 per cent.”
It was not instantly clear when the tariff hike would take impact.
South Korea’s presidential Blue Home mentioned on Tuesday that Trade Minister Kim Jung-kwan will go to the US quickly and meet with United States Secretary of Commerce Howard Lutnick.
The Blue Home mentioned the US authorities had not given official discover on the matter, and South Korea’s presidential adviser will maintain a gathering with associated ministries to debate measures.
The US Commerce Consultant’s workplace didn’t reply instantly to requests for remark. Trump has beforehand threatened different tariff hikes and in some circumstances delayed them or not adopted by way of.
South Korea had been working to implement a deal introduced with Washington final 12 months that lowered US tariffs in opposition to lots of its exports to 15 per cent.
However earlier this month, South Korea’s finance minister mentioned the nation’s deliberate funding of US$350 billion in strategic US sectors beneath the commerce deal was unlikely to kick off within the first half of 2026, citing the weak gained foreign money.
The prospect of huge foreign money outflows has precipitated complications for authorities in Seoul at a time when the gained has slumped to commerce at ranges unseen for the reason that international monetary disaster from 2007 to 2009.
Trump has used the leverage of tariffs all through his second time period in workplace in his overseas coverage. Economists have raised issues concerning the method and the coverage additionally faces a check in an ongoing case on the US Supreme Courtroom.
Within the deal reached between the allies final 12 months, Washington and Seoul agreed to set tariffs on US imports of Korean autos and auto elements at 15 per cent, down from 25 per cent, placing them on par with their Japanese opponents.
The 2 international locations mentioned final 12 months that as a part of the US$350 billion South Korean funding into US strategic sectors, Seoul would pay US$200 billion in money in phased installments that will be capped at US$20 billion a 12 months in an effort to keep up gained stability.
Josh Lipsky, chair of worldwide economics on the Atlantic Council, mentioned Trump’s motion on South Korea mirrored impatience with the tempo of Seoul’s enactment of the framework commerce settlement.
“It is simply one other reminder that the markets have been flawed to consider we have been going to get into tariff stability in 2026,” Lipsky mentioned. “Folks say, ‘Oh, however he would not observe by way of,’ and typically that is true, however typically it is not. And the volatility alone – there’s a worth round that.”
