Trump raises US tariffs on South Korea imports to 25%

January 27, 2026

President Trump announced plans to increase tariffs on South Korean imports from 15% to 25% across multiple product categories, claiming Seoul has failed to fulfill obligations under a trade deal negotiated last year. Trump alleges that South Korean lawmakers have been slow to approve the agreement while the US has already reduced its tariffs as promised. South Korea, which exported approximately $123 billion worth of goods to the US in 2023, responded by stating it received no official notification and is requesting urgent discussions with Washington.

Who is affected

US importers of South Korean goods (who would pay the tariffs)
South Korean exporters, particularly automotive companies like Hyundai and Kia
South Korean Industry Minister Kim Jung-kwan
US Commerce Secretary Howard Lutnick
Investors in South Korean stocks and the Kospi stock index
South Korean government and National Assembly members
US-South Korea trade relationship stakeholders

What action is being taken

South Korea is seeking urgent talks with Washington over the tariff issue
South Korea's Industry Minister Kim Jung-kwan is planning to visit Washington to meet with US Commerce Secretary Howard Lutnick
South Korea's National Assembly is currently reviewing the trade agreement (submitted November 26)

Why it matters

This development threatens a significant bilateral trade relationship worth $123 billion annually, with South Korea being the US's second-largest export destination after China. The tariff increase particularly impacts the automotive sector, which represents about $30 billion of South Korean exports to the US. Beyond economic implications, Trump's use of tariffs as foreign policy leverage strains diplomatic relationships with key allies and creates market uncertainty, though investor skepticism about follow-through suggests potential erosion of the credibility of such threats.

What's next

South Korea's Industry Minister will visit Washington as soon as possible to meet US Commerce Secretary Howard Lutnick
South Korea's National Assembly is likely to pass the trade agreement in February, according to local media
Urgent talks between South Korea and Washington are expected to occur

Read full article from source: BBC