Washington: US President Donald Trump has announced a sharp increase in tariffs on certain imports from South Korea, raising them from 15 percent to 25 percent. The decision affects products such as automobiles, lumber and pharmaceuticals and has added fresh tension to trade ties between the two allies.
Trump said the move was taken because South Korea has not yet approved a major trade and investment agreement reached between the two countries last year. The deal, worth about 350 billion dollars in planned South Korean investments in the United States, was expected to keep tariffs lower in exchange for new business commitments.
In a message posted on social media, Trump said the delay in passing the agreement through South Korea’s parliament left him with no choice but to raise duties. The announcement came as a surprise to officials in Seoul, who said they remain committed to the agreement and are working to complete the legal process needed to implement it.
South Korea’s trade ministry said senior officials will travel to Washington in the coming days to hold talks with US counterparts. The government hopes to prevent further trade damage and restore the lower tariff levels once the deal is approved.
Financial markets reacted quickly to the news. Shares of South Korean carmakers fell in early trading before recovering later in the day. The South Korean won also weakened against the US dollar as investors worried about the impact on exports.
Trade experts say the tariff increase could raise costs for American importers and make South Korean products less competitive in the US market. Cars are among South Korea’s biggest exports to the United States, and higher duties could affect both manufacturers and consumers.
The dispute is part of a wider pattern of ups and downs in trade relations between Washington and Seoul since early 2025. Both sides have alternated between cooperation and confrontation as they try to balance investment promises with domestic political pressures.
Despite the latest move, officials in both countries say they want to avoid a long term trade conflict. Talks are expected to continue, with the goal of bringing the agreement back on track and reducing tariffs once the outstanding issues are resolved.