By Blessing Nweke
US President Donald Trump has announced a sharp increase in tariffs on South Korean imports, raising levies to 25% after accusing Seoul of failing to live up to a trade agreement reached last year.
In a post on social media, Trump said the new tariffs would replace the existing 15% rate and apply across a wide range of products, including automobiles, lumber, pharmaceuticals and what he described as “all other Reciprocal TARIFFS”. He criticised South Korean lawmakers for moving slowly to approve the deal, saying the US had “acted swiftly to reduce our TARIFFS in line with the Transaction agreed to”.
South Korea said it had not received formal notice from Washington of the tariff increase and called for urgent talks. In a statement, the government said Industry Minister Kim Jung-kwan, currently attending meetings in Canada, would travel to Washington as soon as possible to meet US Commerce Secretary Howard Lutnick.
Markets reacted quickly to the announcement. Shares in several major South Korean exporters fell on Tuesday morning, with Hyundai Motor down about 2.5%. Stocks linked to the pharmaceutical and timber sectors also posted losses.
The trade agreement, reached last October, included a pledge by South Korea to invest $350bn (£256bn) in the US, with a portion earmarked for shipbuilding. The following month, both countries agreed that Washington would lower tariffs on certain products once Seoul began the approval process.
The deal was submitted to South Korea’s National Assembly on 26 November and is currently under review, with local media reporting it is likely to pass in February.
Tariffs are paid by importing companies, meaning US firms will bear the cost of the higher duties on South Korean goods.
Trump has frequently used tariffs as leverage during his second term, recently threatening Canada and other allies with punitive trade measures over broader foreign policy disputes.
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