Archive · 29 Jan 2026
Trump Threatens Tariffs on South Korea
President Trump said the U.S. might raise tariffs on South Korean goods to 25% because South Korea hasn't kept its promises from a trade deal made last year.
The U.S. had lowered tariffs to 15% in exchange for South Korea's pledge to invest $350 billion in the U.S. and open its market to more American cars.
However, South Korea's parliament hasn't passed the necessary bills yet.
South Korea's Industry Minister, Kim Jung-kwan, is visiting Washington to talk about this issue.
South Korean officials are surprised and concerned, but they hope to approve the bills in February.
There are also concerns about new South Korean laws that might affect American companies.
President Trump threatened to raise tariffs on South Korean goods to 25% due to unmet trade deal commitments.
The U.S. had lowered tariffs to 15% in exchange for South Korea's pledge to invest $350 billion in the U.S.
South Korea's Industry Minister Kim Jung-kwan will visit Washington on January 31, 2024, to discuss the tariff increase.
South Korea's parliament is expected to vote on the necessary bills in February.
The U.S. trade deficit with South Korea has ballooned to $65 billion.
- Who
- President Donald Trump and South Korean officials, including Industry Minister Kim Jung-kwan
- What
- Potential increase in tariffs on South Korean goods and a visit by South Korea's Industry Minister to Washington
- When
- January 28, 2024 (tariff announcement), January 31, 2024 (minister's visit)
- Where
- United States and South Korea
- Why
- South Korea has not fulfilled its trade deal commitments, and to discuss the tariff increase
U.S. Perspective
South Korean Perspective
Trade Deal Compliance
U.S. Perspective
The U.S. believes South Korea has not fulfilled its commitments under the trade deal, including market access for American cars and investment pledges.
South Korean Perspective
South Korea is working to meet its commitments and is surprised by the sudden threat of increased tariffs.
Tariff Increase
U.S. Perspective
The U.S. sees the potential tariff increase as a necessary measure to enforce trade deal commitments.
South Korean Perspective
South Korea views the potential tariff increase as a concern and is working to resolve the issue through dialogue.
- Tariff Rate
- 25%
- Trade Deficit
- $65 billion
- Investment Pledge
- $350 billion
- Pending Bills
- 5
- Expected Parliament Session
- February
- Industry Minister's Visit
- January 31, 2024
Sources
Trump says ‘we’ll work something out with South Korea’ after tariff threat
Trump says ‘we’ll work something out with South Korea’ after tariff threat
South Korea industry minister to visit Washington on Thursday
India-US mega trade deal ‘any day now’: Post-EU win, $500B target in sight
US Treasury Secretary Scott Bessent unhappy over the European Union signing a trade deal with India
South Korea industry minister arrives in Washington to discuss tariff warning, Yonhap says
