President Trump has launched a new tariff offensive against South Korea, threatening to raise duties on Korean imports to 25% and accusing Seoul’s legislature of refusing to enact a trade deal finalized just months ago. The announcement targets major export categories including automobiles, pharmaceuticals, and lumber products.
The controversy stems from a comprehensive trade and security agreement negotiated between Trump and South Korean President Lee Jae Myung in October 2024. While both leaders celebrated the deal as a breakthrough, it has since become mired in legal and political disputes within South Korea about the necessity of parliamentary approval.
Korean officials were taken aback by Trump’s public announcement, which came without the customary diplomatic advance notice. The government is now mobilizing on multiple fronts, sending the trade minister to Washington for urgent talks while working with parliament to advance legislation that would satisfy American demands.
South Korea’s export-dependent economy is particularly vulnerable to tariff changes, with the automotive sector facing the greatest exposure. Nearly half of Korean car exports go to the United States, and the 27% of total exports represented by autos makes the industry critical to national economic health. Stock market volatility following Trump’s announcement reflected these concerns.
Trump’s approach to trade policy continues to emphasize threats and unpredictability as negotiating tactics. While some threatened tariffs are never implemented, the Atlantic Council’s international economics chair notes that the volatility itself imposes costs on markets and businesses, challenging the assumption that Trump’s threats can be safely ignored.