Trump Raises South Korea Tariffs to 25% Over Unratified Trade Deal
On January 26, 2026, U.S. President Donald Trump announced a sharp increase in tariffs on selected South Korean imports, raising duties from 15% to 25%, citing South Korea's failure to ratify a bilateral trade agreement reached in 2025. The announcement was made via Trump's social media platform, Truth Social.
In his post, Trump directly linked the tariff hike to legislative inaction in South Korea, stating:
'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. South Korea's Legislature is not living up to its Deal with the United States. President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn't the Korean Legislature approved it? 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%. Thank you for your attention to this matter!'
According to the announcement, the higher tariffs will apply to South Korean automobiles and auto parts, lumber, pharmaceutical products, as well as all other goods subject to 'reciprocal tariffs.' Automobiles and auto parts represent South Korea's largest export category to the United States, accounting for approximately 27% of total South Korean exports to the U.S. market.
The tariff increase represents a reversal of concessions granted under a trade framework agreement reached on July 30, 2025, and reaffirmed during Trump's visit to South Korea on October 29, 2025. Under that framework, South Korea agreed to invest USD 350 billion in U.S. strategic sectors. The commitment included phased cash payments capped at USD 20 billion per year, partly intended to support stability in the Korean won. In return, the United States reduced tariffs on key South Korean exports — including automobiles, auto parts, and pharmaceutical products — to 15%, a rate lower than the previously threatened 25%.
However, the agreement has yet to be approved by South Korea's legislature. Earlier, South Korea's finance minister indicated that the rollout of the investment plan could be delayed until the second half of 2026 due to pressure from a weakening won, a factor that may have contributed to the ratification delay.
Trump's announcement did not specify a concrete implementation date for the higher tariffs, leaving it unclear whether the new 25% rate takes effect immediately.
The move injects fresh uncertainty into U.S.–South Korea trade relations and could have significant implications for supply chains, particularly in the automotive and pharmaceutical sectors, should the tariff increase be enforced as announced.