U.S. Increases Tariffs on South Korean Goods Amid Legislative Delays
In a recent announcement, President Donald Trump stated that the United States will raise tariffs on South Korean imports. This decision comes as South Korea has yet to ratify a trade agreement initiated last year. The changes will see tariffs on automobiles, lumber, and pharmaceuticals increase, with other goods facing a hike from 15% to 25%.
President Trump utilized social media to express his stance, emphasizing the importance of reciprocal tariff reductions in trade deals. “Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to,” he said. “We, of course, expect our Trading Partners to do the same.”
This development is part of an ongoing pattern where tariffs have been used as a tool for negotiation, often causing disruptions in the global economy. Trump’s previous tariffs were linked to South Korea’s pledge to invest $350 billion in the U.S., including initiatives to bolster American shipyards. However, relations have been strained, notably following an immigration raid at a Hyundai manufacturing site in Georgia last year.
In response, South Korea’s presidential office has committed to upholding the trade agreement, with Industry Minister Kim Jung-Kwan and Trade Minister Yeo Han-koo scheduled for talks in the U.S. to address the situation. Meanwhile, five bills related to South Korea’s investment package are under review by the National Assembly, with expectations to merge them into a single law for approval.
Trump’s approach to tariffs extends beyond South Korea. Recently, he threatened tariffs on European nations and considered a 100% tax on Canadian goods related to its trade ties with China. Although he retracted some threats after discussions at the World Economic Forum in Davos, Switzerland, the administration continues to face scrutiny over the implementation of various trade agreements.
Looking ahead, the U.S. is set to renegotiate its 2020 trade pact with Canada and Mexico, with additional Section 232 investigations and a Supreme Court ruling pending on the legal grounds of Trump’s tariff declarations.
