Trump Increases Tariffs on S. Korean Imports to Twenty-Five Per Cent
The decision, communicated via his social media platform, directly criticizes the South Korean legislature for failing to ratify a “historic” trade and investment deal finalized with President Lee Jae Myung in October 2025.
“President Lee and I reached a Great Deal for both Countries... Why hasn’t the Korean Legislature approved it?” Trump wrote, highlighting what he described as Seoul’s failure to meet its commitments.
South Korea’s presidential office said it had not yet received any official notice from Washington and announced that its trade minister would travel to the U.S. for urgent discussions.
The dispute revolves around a deal first announced in July 2025, which aimed to reduce U.S. tariffs from 25% to 15% in return for substantial South Korean commitments, including an investment pledge of $350 billion in the United States. The agreement has stalled in South Korea’s National Assembly amid intense political and economic scrutiny.
President Lee has publicly warned that meeting the investment demand, particularly in cash, could trigger a severe liquidity crisis, drawing comparisons to the 1997 Asian Financial Crisis, during which South Korea nearly exhausted its foreign currency reserves and required a major IMF bailout.
Observers note that this action aligns with Trump’s broader “America First” trade strategy, which uses the threat of steep tariffs as leverage to secure investment commitments and favorable terms from international partners.
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