Archive · 28 Jan 2026
Trump Raises Tariffs on South Korea
President Trump has decided to increase tariffs on goods from South Korea.
He said this is because South Korea hasn't passed a trade agreement that was made earlier.
The tariffs will go up from 15% to 25% on things like cars, lumber, and medicine.
This could make it harder for South Korea to sell things to the US.
The US buys a lot of cars from South Korea, so this change might affect their economy.
Other countries like Japan and the European Union have deals with the US for lower tariffs, so South Korea might be at a disadvantage.
South Korea had planned to invest a lot of money in the US, but this might be delayed because of the weak South Korean currency.
South Korea is now trying to talk to the US about this and speed up the approval of the investment bill.
US President Donald Trump announced a tariff increase on South Korean goods from 15% to 25%.
The increase targets autos, lumber, pharmaceuticals, and other reciprocal goods.
The move comes after South Korea's Legislature failed to enact a historic trade agreement with the US.
The auto industry accounts for 27% of South Korea's exports to the US, which buys nearly half of their car exports.
Higher tariffs could put South Korean exports at a disadvantage compared to Japan and the European Union, which have 15% tariffs with the US.
- Who
- US President Donald Trump and South Korea's legislature
- What
- Increased tariffs on South Korean goods from 15% to 25%
- When
- Announced on Monday, January 26, 2026 (specific date not mentioned)
- Where
- United States and South Korea
- Why
- South Korea's legislature has not enacted the historic trade agreement, and Trump is frustrated with the slow pace of implementation.
Trump's Perspective
South Korea's Perspective
Trade Deal Implementation
Trump's Perspective
Trump believes South Korea's legislature is not living up to the historic trade agreement, citing delays in enactment.
South Korea's Perspective
South Korea's finance minister notes that the weak won currency and uncertainty over U.S. Supreme Court rulings are delaying the investment.
Tariff Increase Justification
Trump's Perspective
Trump sees the tariff increase as a necessary response to South Korea's legislative inaction.
South Korea's Perspective
South Korea views the tariff increase as premature and is seeking clarification and consultations with the U.S.
- Tariff Increase
- 25%
- Previous Tariff Rate
- 15%
- Affected Goods
- Autos, Lumber, Pharmaceuticals, and other Reciprocal Goods
- Auto Industry's Share of Exports to US
- 27%
- US Share of South Korea's Car Exports
- Nearly 50%
- South Korea's Planned Investment in US
- $350 billion
- South Korea's Cash Payment in Investment
- $200 billion in phased installments
- South Korea's Exports to US in 2024
- $132 billion
- Auto Exports to US in 2025
- $30.2 billion (25% of total US shipments)
Sources
Trump Hikes Tariffs On South Korean Goods To 25%
Trump says he is raising tariffs on certain South Korean imports
Trump says he is raising tariffs on South Korean imports
Trump Hikes Tariffs On South Korean Goods To 25% Over Stalled Trade Framework Approval
'We reached a great deal but...': Trump punishes ally South Korea by raising tariffs to 25%: Here's why
South Korea moves to fast-track US investment bill after Trump threatens 25% tariff
Donald Trump raises US tariffs on South Korea imports to 25% because the country ‘is not living up’ to trade agreement
Trump slaps 25% tariffs on South Korea over failure to enact trade deal: ‘Not living up’ to agreement
Trump says he is raising tariffs on South Korean imports after trade deal delays
Trump raises tariffs on South Korea to 25% for 'not living up to' trade deal
Trump to raise South Korea tariffs to 25% over trade deal delays
Trump Threatens New Tariffs on South Korea
US Increases Tariffs on South Korean Imports to 25% Amid Trade Dispute
Explainer-Why has President Trump threatened to raise US tariffs on South Korea again?
South Korea reassures on US investment pledge after Trump threatens to hike tariffs
Why Has President Trump Threatened to Raise US Tariffs on South Korea Again?
Donald Trump threatens higher tariffs on South Korean goods over trade deal delay - Telegraph India
Trump threat on South Korea jolts trade partners who thought they had deals
