Trump Announces 25% Tariffs on South Korean Imports Amid Trade Deal Dispute

US Tariffs on South Korean Imports

• ⚡ President Trump announced on Monday that he is increasing tariffs on South Korean imports into the US.
• ⚠️ The reason cited is that South Korea's legislature was not upholding its side of a trade deal with the United States.
• 📈 Tariffs on South Korean autos, lumber, and pharma are being raised to 25%, with other reciprocal tariffs also increasing from 15% to 25%.
• ❓ The exact effective date for these new tariffs remains unclear.

South Korea's Response and Market Impact

• 💬 South Korea's presidential blue house stated that the industry minister would visit the US soon to meet with the Secretary of Commerce.
• 🚫 Seoul has not yet received official notification of the US tariff hikes and is discussing response measures.
• 📉 Following the news, South Korea's benchmark Cosby index initially dropped nearly 5% but later recovered to trade up around 1.5%.
• 💱 The South Korean won weakened against the dollar after reaching a near one-month high.

Trade Deal Details and Export Data

• 🤝 The trade deal, announced last year, includes a significant $350 billion South Korean investment into the US.
• 📊 South Korean exports to the US reached a record high of over $79 billion in 2025, an increase of 3.8% from 2024.
• 📉 Despite the overall increase, US-bound shipments from South Korea fell by 3.8%, though the US remains their second-largest market after China.
• 🗓️ South Korea's National Assembly typically approves bills during scheduled sessions, with the next review sessions due to begin on February 3rd.