Trump raises US tariffs on South Korea imports to 25%
3 months ago
- #Tariffs
- #US-South Korea Relations
- #Trade War
- US President Donald Trump announced an increase in tariffs on South Korean imports to 25%, citing Seoul's failure to live up to a previous trade deal.
- The tariff hike affects a range of products, including automobiles, lumber, pharmaceuticals, and other reciprocal tariffs.
- South Korea expressed surprise at the decision, stating it had not received official notice and called for urgent talks with Washington.
- South Korea's Industry Minister plans to visit Washington soon to discuss the issue with US Commerce Secretary Howard Lutnick.
- South Korea is the US's second-largest export market, with car exports alone accounting for $30bn of the $123bn total exports to the US.
- Initial market reactions saw shares in Hyundai and Kia drop by up to 6%, but they later recovered, closing only 1% lower.
- Analysts remain skeptical about the tariff hike's implementation, referencing Trump's recent reversal on tariffs against European trade partners.
- The US and South Korea had previously agreed on a trade deal in October, including a $350bn investment pledge from South Korea to the US.
- Trump has frequently used tariffs as a foreign policy tool, recently threatening Canada with a 100% tariff if it struck a deal with China.
- The Greenland tariff threat was later withdrawn, but it strained US relations with Denmark and other NATO allies.