WASHINGTON: US President Donald Trump stated on Monday (Jan 26) he was growing tariffs on South Korean imports into the US associated to autos, lumber and prescribed drugs to 25 per cent whereas accusing the ally’s legislature of “not dwelling up” to its commerce take care of Washington.
“South Korea’s Legislature will not be dwelling as much as its take care of the US,” Trump wrote on social media.
“As a result of the Korean Legislature hasn’t enacted our Historic Commerce Settlement, which is their prerogative, I’m hereby growing South Korean tariffs on autos, lumber, pharma, and all different reciprocal tariffs, from 15 per cent to 25 per cent.”
It was not instantly clear when the tariff hike would take impact.
South Korea’s presidential Blue Home stated on Tuesday that Business Minister Kim Jung-kwan will go to the US quickly and meet with United States Secretary of Commerce Howard Lutnick.
The Blue Home stated the US authorities had not given official discover on the matter, and South Korea’s presidential adviser will maintain a gathering with associated ministries to debate measures.
The US Commerce Consultant’s workplace didn’t reply instantly to requests for remark. Trump has beforehand threatened different tariff hikes and in some circumstances delayed them or not adopted by.
South Korea had been working to implement a deal introduced with Washington final 12 months that lowered US tariffs towards a lot of its exports to 15 per cent.
However earlier this month, South Korea’s finance minister stated the nation’s deliberate funding of US$350 billion in strategic US sectors below the commerce deal was unlikely to kick off within the first half of 2026, citing the weak received foreign money.
The prospect of huge foreign money outflows has prompted complications for authorities in Seoul at a time when the received has slumped to commerce at ranges unseen because the international monetary disaster from 2007 to 2009.
Trump has used the leverage of tariffs all through his second time period in workplace in his overseas coverage. Economists have raised issues concerning the method and the coverage additionally faces a check in an ongoing case on the US Supreme Court docket.
Within the deal reached between the allies final 12 months, Washington and Seoul agreed to set tariffs on US imports of Korean autos and auto elements at 15 per cent, down from 25 per cent, placing them on par with their Japanese rivals.
The 2 international locations stated final 12 months that as a part of the US$350 billion South Korean funding into US strategic sectors, Seoul would pay US$200 billion in money in phased installments that will be capped at US$20 billion a 12 months in an effort to keep up received stability.
Josh Lipsky, chair of worldwide economics on the Atlantic Council, stated Trump’s motion on South Korea mirrored impatience with the tempo of Seoul’s enactment of the framework commerce settlement.
“It is simply one other reminder that the markets had been unsuitable to imagine we had been going to get into tariff stability in 2026,” Lipsky stated. “Folks say, ‘Oh, however he does not observe by,’ and generally that is true, however generally it is not. And the volatility alone – there’s a value round that.”
