Donald Trump threatens to hike tariffs on South Korea imports to 25% because the country ‘is not living up’ to trade agreement

It was not immediately clear when the higher tariffs would come into effect, Reuters reported.
South Korea’s presidential office and the US Trade Representative did not respond straight away to requests for comment, according to Reuters.

The two countries reached a trade deal last year that lowered US tariffs on many South Korean exports to 15%. Under the agreement, South Korea also committed to invest $350 billion in US strategic sectors.

Earlier this month, South Korea’s finance minister said the investment was unlikely to begin in the first half of 2026, citing pressure from a weak won currency, Reuters reported. The currency has fallen to levels last seen during the global financial crisis.

Reuters said Trump has repeatedly used tariffs as a tool in his second term, sometimes announcing increases that were later delayed or not carried out. Economists have warned that the approach creates uncertainty for markets.

In the deal agreed last year, Washington and Seoul had reduced tariffs on South Korean cars and auto parts from 25% to 15%, putting them on the same level as Japanese competitors.

Josh Lipsky, chair of international economics at the Atlantic Council, told Reuters that Trump’s move showed frustration with how slowly South Korea was putting the agreement into law.

“It’s another reminder that expectations of tariff stability in 2026 were misplaced,” Lipsky said, according to Reuters. “Sometimes he follows through, sometimes he doesn’t, but the uncertainty itself has a cost.”