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The United States has sharply escalated trade tensions with South Korea after Donald Trump announced a significant increase in tariffs on South Korean imports, raising duties from 15 per cent to 25 per cent. The move targets key sectors including automobiles, lumber and pharmaceuticals, and comes amid Washington’s accusation that Seoul has failed to honour the terms of an existing bilateral trade agreement.
Announcing the decision on social media, Trump said the tariff hike was driven by repeated delays in legislative approval in South Korea, which he claimed undermined commitments made under a previously negotiated deal. According to the US President, the agreement had been finalised with South Korea’s leadership in mid-2025 and reaffirmed during his visit later that year, but had yet to be fully implemented by Seoul’s National Assembly.
The White House confirmed that the revised tariffs would take effect immediately, marking a sharp reversal from earlier expectations that duties on South Korean exports would be reduced. The affected categories include automobiles and auto parts, timber products, pharmaceuticals and additional goods that may be subjected to reciprocal tariffs in the coming weeks.
The announcement has injected uncertainty into one of Washington’s most important trade relationships in Asia. South Korea is a major exporter to the United States, particularly in the automobile and pharmaceutical sectors, and the higher tariffs are expected to raise costs for US importers while placing pressure on South Korean manufacturers already navigating a volatile global trade environment.
The tariff escalation follows months of friction between the two allies. South Korea had been working to operationalise a deal announced late last year that aimed to lower US tariffs on select South Korean goods, bringing them in line with duties applied to other major trading partners. That agreement was also linked to large-scale South Korean investment commitments in strategic US sectors, designed to deepen economic cooperation and stabilise bilateral trade flows.
However, Washington has increasingly expressed frustration over what it sees as regulatory and political delays in Seoul. US officials have also pointed to ongoing discussions surrounding a probe into a major US-based e-commerce platform with South Korean operations, following a large data breach, as an additional source of tension between the two governments.
In response to the tariff decision, South Korea’s presidential office said the country’s Industry Minister is expected to travel to Washington for urgent consultations with senior US trade officials. The Blue House indicated that it had not yet received formal diplomatic notification of the tariff increase but confirmed that internal discussions were underway to assess potential countermeasures and diplomatic responses.
Under the framework agreed last year, Washington and Seoul had committed to reducing US tariffs on South Korean automobiles and auto components from 25 per cent to 15 per cent, aligning them with tariffs applied to Japanese exporters. The sudden reversal has raised concerns within South Korea’s export-driven economy, where industries fear losing competitiveness in the US market.
Trump has made tariffs a central pillar of his second-term economic strategy, frequently using them as leverage to extract concessions from allies and rivals alike. While the administration argues that the approach protects American industries and jobs, economists have warned that higher tariffs risk increasing consumer prices and disrupting global supply chains. The policy is also facing legal challenges within the United States, with aspects of the tariff regime expected to be reviewed by the Supreme Court.
As talks loom between Washington and Seoul, the tariff hike underscores the growing unpredictability of global trade relations and signals that even long-standing alliances are not immune to economic pressure tactics.
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Published: Jan 27, 2026