Donald Trump has escalated trade tensions with a key Asian ally by sharply raising tariffs on imports from South Korea, signalling a tougher stance on trade deals that, in his view, are not being implemented fast enough.
In a social media post, Trump announced that tariffs on South Korean goods would be increased to 25 percent from 15 percent, covering a wide range of products including automobiles, timber, pharmaceuticals and other categories under what he described as “reciprocal tariffs”.
Trump accused Seoul of “not living up” to a trade agreement reached last year, saying South Korean lawmakers had been slow to approve the deal, while the US had already moved quickly to reduce its own tariffs in line with the agreement.
South Korea, however, said it had not received any official notification from Washington regarding the tariff hike. The South Korean government said it was seeking urgent consultations with the US to clarify the issue and resolve differences.
Industry Minister Kim Jung-kwan, who is currently in Canada, is expected to travel to Washington at the earliest to meet US Commerce Secretary Howard Lutnick, according to officials in Seoul.
The tariff announcement rattled South Korean markets. Shares of major exporters slipped in early trading on Tuesday, with Hyundai Motor falling about 2.5 percent. Stocks linked to the pharmaceutical and timber sectors also came under pressure.
The tariff move comes despite a bilateral deal reached in October last year, under which South Korea committed to invest $350 billion in the US. A portion of the investment was earmarked for shipbuilding and other strategic sectors.
In November, the two sides had agreed that the US would reduce tariffs on certain products once South Korea initiated the process of approving the deal domestically. The agreement was submitted to South Korea’s National Assembly on November 26 and is currently under review. Local media reports suggest it is likely to be passed in February.
