US President Donald Trump announced a tariff increase on selected South Korean imports, lifting rates from 15% to 25%.
The higher tariffs apply to Korean-made cars, lumber, and pharmaceutical products entering the United States.
Trump said the move follows delays by South Korea’s legislature in approving a bilateral trade agreement reached in November.
The trade relationship between the United States and South Korea is valued at more than $160 billion.
Under the November agreement, South Korea agreed to reduce tariffs on US cars and auto parts from 25% to 15%.
The deal also included a pledge of $350 billion in South Korean investment across multiple US industrial sectors.
Trump said the agreement was reaffirmed during meetings with President Lee in July and October 2025.
South Korea’s Legislature is not living up to its Deal with the United States.
Donald Trump said.
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.
Trump added.
Why hasn’t the Korean Legislature approved it?
Trump highlighted.
Trump said the tariff increase restores rates to levels in place before the agreement was announced.
Our Trade Deals are very important to America.
Donald Trump also noted.
We have acted swiftly to reduce our TARIFFS in line with the transaction agreed to.
Trump emphasized.
We expect our Trading Partners to do the same.
Trump said.
Shares of South Korean automakers Hyundai and Kia fell following Trump’s announcement.
The tariff decision adds pressure to Seoul amid growing global trade tensions.
Trump has previously warned of aggressive tariff measures against other US trading partners.
He earlier threatened tariffs of up to 100% on Canadian goods if Canada pursued a free trade deal with China.
Canadian Prime Minister Marc Carney later ruled out such an agreement with Beijing.
Trump also warned of potential tariffs on several European countries opposing the annexation of Greenland.
Those proposed tariffs targeted Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland.
The European tariff threat was later withdrawn after the United States reached an agreement with NATO.
Trump said the NATO deal addressed future arrangements concerning Greenland.
The South Korea tariff move signals a renewed use of trade pressure as a foreign policy tool.
Market analysts said further escalation could affect global supply chains and automotive markets.
South Korean officials have not yet issued a formal response to the tariff increase.
The White House said discussions remain open if South Korea completes its legislative approval process.
Investors are watching closely for signs of retaliation or renewed negotiations.
The development underscores uncertainty around global trade frameworks in early 2026.