US President Donald Trump has announced plans to sharply increase tariffs on South Korean goods, warning that import duties on key products such as automobiles, lumber and pharmaceuticals could rise to 25 per cent.
In a post on his Truth Social platform on Monday, Trump accused South Korea’s legislature of failing to implement an earlier trade agreement reached with Washington. He said the proposed increase would lift tariffs from the current 15 per cent level, arguing that Seoul had not followed through on commitments made under what he described as a “historic” deal.
South Korea’s presidential office said it had not received prior notice of the move and expressed surprise at the announcement. Officials confirmed that Trade Minister Kim Jung-kwan, who is currently in Canada, is expected to travel to Washington for talks with US Commerce Secretary Howard Lutnick in an effort to clarify the situation.
The latest warning marks a potential reversal in relations that had appeared to stabilise only months ago. In October, Trump and South Korean President Lee Jae Myung finalised a trade and security arrangement after protracted negotiations. That agreement included South Korean investment pledges alongside US concessions on tariffs, notably reducing American duties on South Korean vehicles from 25 per cent to 15 per cent.
Despite the announcement, the agreement has remained in legal uncertainty in Seoul. South Korea’s government has previously argued that the deal did not require parliamentary ratification, describing it as a memorandum of understanding rather than a binding treaty. On Tuesday, a senior official said the administration was still reviewing whether the pact had been formally submitted to the National Assembly.
If Trump proceeds with the proposed tariff increase, it would effectively undo one of the most significant outcomes of the agreement. The auto sector is particularly exposed: vehicles and related products account for more than a quarter of South Korea’s exports to the United States, which absorbs nearly half of the country’s total car shipments abroad.
Analysts warn that a return to higher tariffs could leave South Korean exporters at a disadvantage compared with competitors such as Japan and the European Union, both of which have secured US tariff ceilings of around 15 per cent. Any sustained increase could also ripple through global supply chains at a time of fragile economic recovery.
For now, no formal US notification has been issued to implement the tariff hike. But the threat adds to a growing list of confrontations with key trading partners. Over the weekend, Trump warned Canada that deeper trade ties with China could trigger sweeping tariffs, while earlier this month he floated penalties against several European countries before later stepping back.
Whether the warning to Seoul becomes policy will likely depend on the outcome of talks in Washington. But the episode underscores the volatility of US trade relations under Trump and the renewed uncertainty facing export-driven economies such as South Korea.
