President Trump has blasted South Korea’s legislature with a threat of 25% tariffs on major exports, claiming Seoul has failed to honor commitments from a trade agreement negotiated in 2024. The announcement targets key sectors including automobiles, pharmaceuticals, and lumber products.
The disputed trade and security agreement was finalized in October 2024 after negotiations between Trump and South Korean President Lee Jae Myung. While both leaders celebrated the deal, it has since become mired in South Korean domestic political disputes about whether parliamentary ratification is required.
Korean officials expressed frustration at receiving no diplomatic advance notice of the tariff threat. The government is mobilizing responses including emergency talks in Washington and expedited legislative action to pass five bills that would enable promised investments.
South Korea’s export-dependent economy is particularly vulnerable to tariff changes, with the automotive industry representing the greatest exposure. The United States absorbs nearly half of all Korean car exports, making American trade policy critically important to manufacturers.
Trump’s willingness to threaten major tariffs against a key ally demonstrates his continued emphasis on trade policy as a diplomatic weapon. While not all threatened tariffs are implemented, economists note that volatility itself carries economic costs for businesses and markets.