Economy January 26, 2026

U.S. raises tariffs on South Korean imports after Seoul fails to ratify trade pact

President increases levies from 15% to 25% and names autos, lumber and pharmaceuticals among affected goods

By Leila Farooq
U.S. raises tariffs on South Korean imports after Seoul fails to ratify trade pact

President Donald Trump announced an increase in tariffs on South Korean goods from 15% to 25%, citing the South Korean legislature's failure to approve a trade agreement the two countries reached last year. The move, detailed in a Truth Social post, singles out automobiles, lumber, pharmaceuticals and other products subject to reciprocal tariffs and follows prior U.S. tariff reductions tied to the agreed transaction.

Key Points

  • President Trump announced tariffs on South Korean goods will rise from 15% to 25% because South Korea's legislature has not approved a trade agreement reached last year.
  • The tariff increase will cover categories named by the president, including automobiles, lumber and pharmaceuticals, and applies to products subject to reciprocal tariffs.
  • Trump said the two leaders agreed to a "Great Deal for both Countries" on July 30, 2025, with terms reaffirmed during his October 29, 2025 visit to Korea; he noted the U.S. had reduced its tariffs in line with the agreed transaction and expects partners to follow suit.

U.S. President Donald Trump said on Monday that he is raising tariffs on goods imported from South Korea from 15% to 25% because the South Korean legislature has not approved a trade agreement negotiated last year.

In a post on Truth Social, the president specified that the tariff increase will apply to South Korean automobiles, lumber, pharmaceuticals and other items covered by reciprocal duties. He framed the action as a response to legislative inaction in Seoul.

Trump wrote that he and South Korean President Lee agreed to what he called a "Great Deal for both Countries" on July 30, 2025, and that the terms of that arrangement were reaffirmed during his visit to Korea on October 29, 2025. He questioned why Korean lawmakers had not enacted the pact, saying:

"South Korea’s Legislature is not living up to its Deal with the United States."

The president acknowledged that it is the prerogative of the South Korean legislature not to pass what he labeled a "Historic Trade Agreement," but said his administration would respond by raising tariffs. He also noted that the United States had "acted swiftly to reduce our TARIFFS in line with the Transaction agreed to" and said he expected trading partners to reciprocate.

The announced tariff hike is a direct consequence, according to the administration's statement, of the trade pact remaining unsigned by the South Korean legislature. The declaration identifies specific product categories that will be affected and reiterates the sequence of bilateral steps - agreement, reaffirmation during a presidential visit, then a demand for legislative approval.

The public communication on Truth Social makes clear that the U.S. action is tied to the legislature's failure to ratify the deal rather than to any newly negotiated terms. Beyond listing categories of goods that will face higher levies, the statement emphasizes a reciprocal expectation: the U.S. reduced tariffs under the transaction and expects its trading partner to follow suit by approving the agreement.


Context and immediate implications

The president's announcement links the tariff increase explicitly to legislative inaction in South Korea and underscores a reciprocal framework underpinning the earlier transaction. The administration's move will raise duties from 15% to 25% on the specified South Korean goods until the issue of enactment is resolved.

The details provided in the public post focus on the connection between the bilateral deal - reached July 30, 2025 and reaffirmed October 29, 2025 - and the mechanics of tariff adjustments, rather than on additional diplomatic steps or timelines for resolution.

Risks

  • Legislative delay in South Korea creates uncertainty for exporters of automobiles, lumber and pharmaceuticals that were identified as affected by the tariff increase - these sectors could face higher costs due to the new duties.
  • The imposition of higher reciprocal tariffs risks escalating trade frictions between the United States and South Korea while the agreement remains unapproved by the South Korean legislature.
  • The tariff adjustment highlights uncertainty around the timeline and outcome of the South Korean legislature's decision, leaving firms and markets with limited clarity on when duties might be restored to previous levels.

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