Trump to Increase Tariffs on South Korea

On Monday, President Trump declared his intention to raise tariffs on South Korea to 25%. He accused the South Korean government of not adhering to the terms of their trade agreement with the United States.

In a post on Truth Social, he stated:

Our trade agreements mean a lot to America. We’ve acted swiftly to lower tariffs according to what we’ve agreed. We expect the same from our partners.

South Korea’s parliament hasn’t followed through on our agreement. I made a significant deal with President Lee on July 30, 2025, and reiterated these terms during my visit to South Korea on October 29, 2025. Why hasn’t their parliament approved it?

Since South Korea hasn’t enacted this crucial agreement, which is their choice, I will be increasing tariffs on automobiles, lumber, pharmaceuticals, and other reciprocal tariffs from 15% to 25%. Thank you for your consideration.

As noted earlier, during the Asia-Pacific Economic Cooperation (APEC) forum dinner in Gyeongju the previous October, President Trump had previously mentioned that the deal was “almost finalized.”

He also mentioned discussions about national security and suggested that they came to important conclusions on various matters. Kim Yong-beom, a senior aide to South Korean President Lee Jae-myung, stated that the two nations planned to lower tariffs from 25% to 15% as part of the arrangement, including South Korea’s commitment to invest $350 billion in the U.S.

Reports indicated that Trump and Lee had agreed on structuring these investments into two funds: a $200 billion general investment account, funded at $20 billion annually, and a more urgent $150 billion fund aimed at U.S. shipbuilding.

Under the terms of this agreement, pharmaceuticals and timber were designated as receiving most-favored-nation status.

Trump’s decision to increase auto tariffs is notable, considering South Korea had been keen on reducing their initial 25% tariffs prior to the agreement.