President Trump has announced plans to raise tariffs on South Korean goods to 25% from the current 15%, citing Seoul’s legislative branch for failing to ratify a trade agreement both countries negotiated in 2024. The threat encompasses major export categories including automobiles, lumber, and pharmaceutical products.
The October 2024 trade and security agreement was celebrated as a diplomatic achievement when Trump and South Korean President Lee Jae Myung finalized it after months of tense negotiations. However, the deal has languished in legal limbo within South Korea, with disputes over whether parliamentary approval is constitutionally required.
Korean officials were caught unprepared by Trump’s public announcement, receiving no advance diplomatic warning. The government is responding on multiple fronts, dispatching the trade minister to Washington for emergency talks while working with parliament to pass enabling legislation.
South Korea’s export-oriented economy is particularly vulnerable to tariff changes, with the automotive sector representing the greatest exposure. The United States absorbs nearly half of all Korean car exports, making American trade policy critically important to Korean manufacturers and the broader economy.
Trump’s willingness to threaten tariffs against a key ally demonstrates his continued emphasis on trade policy as a primary foreign policy instrument. International trade experts note that even threats that aren’t implemented create market volatility and business uncertainty, imposing real economic costs.