Trump hikes tariffs on South Korea to 25%; cites legislative delay in enacting 'historic' trade deal

US president Donald Trump announced on Monday that he is raising tariffs on South Korean imports of autos, lumber and pharmaceuticals to 25 per cent, accusing the ally’s legislature of failing to uphold its trade agreement with the United States.Trump added that South Korea’s legislature has not approved the trade deal he and President Lee Je Myung agreed to on July 30, 2025, and reaffirmed during his visit on October 29, 2025, questioning why it has not been ratified. "Because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%." Trump said through a post on Truth Social. "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. We, of course, expect our Trading Partners to do the same," Trump added.South Korea has been moving to implement a deal announced with Washington in November aimed at reducing US tariffs on its exports. More recently, Seoul has been in talks with US officials to clarify its investigation into US-based e-commerce company Coupang (CPNG.N), which was launched following a major data leak, as cited by Reuters. South Korea is a key trading partner for the United States, consistently ranking among the top 10 sources of US imports. American companies and consumers import nearly $150 billion worth of goods from South Korea each year.In July, Trump announced a trade deal with South Korea’s president, but progress stalled for months amid disagreement over an investment pledge sought by the United States. The two leaders later finalized the agreement in October during Trump’s trip to Asia, including a commitment to invest $350 billion in the United States.In November, the White House and the South Korean government released a "fact sheet" outlining the deal, which was intended to move the agreement forward, as cited by NBC News.The agreement included reduced tariffs for both countries, capping US import duties at 15 per cent. This marked a rollback from the 25 per cent tariff rate announced earlier in 2025 on South Korea’s "Liberation Day" in April, a move that had unsettled markets.Trump’s latest tariff announcement follows at least three previous threats that were never carried out. These included a proposed 10 per cent tariff on Canada after Ontario ran an anti-tariff World Series ad, threatened tariffs on European countries over Greenland, and a 100 per cent tariff on Canada that was announced last week.