US President Donald Trump has announced higher tariffs on South Korean goods, accusing Seoul's legislature of failing to approve a previously agreed trade deal.
"Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to. We, of course, expect our Trading Partners to do the same," Trump said on his Truth Social platform on Monday.
Saying that "South Korea's Legislature is not living up to its Deal with the United States," he said: "President Lee (Jae-myung) and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn't the Korean Legislature approved it?"
Trump said that because the agreement has not been enacted, "I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%."
Stalled agreement
The agreement was finalised after Trump met his South Korean counterpart Lee Jae-myung in October, and included investment promises by South Korea alongside tariff cuts by the United States.
Under the pact, Washington would maintain levies of up to 15 percent on South Korean goods, including vehicles, car parts and pharmaceuticals.
Crucially, the deal's terms brought US tariffs on South Korean cars down from a 25 percent level.
Trump's latest threat, if enacted, would reverse that.
The auto industry accounts for 27 percent of South Korea's exports to the United States, which takes in nearly half of the country's car exports.
A reversal to a higher tariff level would also put South Korean exports in a less advantageous position compared with economies like Japan and the European Union, which have both struck deals for a 15 percent US tariff.
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Source: TRT