Donald Trump announced an increase in tariffs on goods from South Korea from 15% to 25%, claiming that the country did not comply with a trade agreement. The decision provoked cautious reactions in Seoul, instability in the markets and could face legal limits, depending on an ongoing case in the US Supreme Court.
President Donald Trump announced on Monday that he will increase tariffs on goods from South Korea from 15% to 25%.
“As the Korean National Assembly did not approve our Historic Trade Agreement, which is their prerogative, I therefore order the increase in South Korean TARIFF on Automobiles, Lumber, Pharmaceuticals and all other RECIPROCAL TARIFF, from 15% to 25%”, wrote Trump in a post on the social network Truth Social.
It is unclear when the new tariffs will come into effect. The White House did not immediately respond to CNN’s request for comment.
Seoul plans to “respond calmly” and convey “its willingness to comply with the tariff agreement” to the United States, presidential spokeswoman Kang Yoo-jung said in a statement released on Tuesday.
But South Korean officials are now rushing in-person meetings with elements of the Trump administration. The country’s Minister of Commerce brought forward a previously scheduled trip to the United States and will meet, in the coming days, with the representative for Commerce, Jamieson Greer, Kang explained, while the Minister of Industry will also add a trip to the USA to meet with the Secretary of Commerce, Howard Lutnick, as soon as he concludes his current visit to Canada.
South Korea’s main stock index, the Kospi, fell more than 1% before recovering in the early hours of Tuesday’s session. Hyundai, the country’s automobile giant, fell more than 2.2% at 9:47 a.m. local time.
South Korea is one of the main sources of foreign goods imported by the United States, having exported goods worth $132 billion to the country in 2024, according to data from the Department of Commerce. Among the main exports to the USA are automobiles and automotive parts, as well as semiconductors and electronic products. These goods are at risk of becoming more expensive as rates rise.
Trump announced, in July, one that prevented tariffs on the country’s goods from rising from 10% to 25%. The agreement also provided for preferential taxes on imported automobiles, among other products.
Trump’s ability to increase widespread tariffs on goods from South Korea or other countries may be conditioned by the outcome of a historic tariff case currently before the Supreme Court.
The case will determine whether Trump had the legal authority to impose broad, country-specific tariffs. If the justices rule against the administration, Trump likely won’t be able to immediately change customs duties on all goods coming from specific countries.
Trump’s announcement comes after a series of recent tariff threats, including one and an additional 10% tariff on countries that oppose his ambitions regarding Greenland, the latter of which has since been withdrawn.
CNN’s Gawon Bae and John Liu contributed to this report.
