Donald Trump has demanded that South Korea pay a price for trade deal delays, threatening to impose 25% tariffs on major exports including automobiles, lumber, and pharmaceuticals. The president’s statement blamed Seoul’s legislature for failing to ratify a bilateral agreement from 2024.
The trade framework was negotiated between Trump and South Korean President Lee Jae Myung in October 2024, including reciprocal concessions such as reduced US tariffs on Korean vehicles from 25% to 15%. However, disagreements about implementation requirements have prevented the deal from taking full effect.
South Korea’s presidential office maintains it received no advance warning of Trump’s tariff threat through official channels. Officials are scrambling to respond, dispatching the trade minister to Washington while working with parliamentary leaders to expedite five relevant bills.
The potential economic impact is significant, particularly for the automotive sector which accounts for more than a quarter of South Korean exports to the United States. When Trump’s threat became public, Korean carmaker stocks fell sharply before partially recovering.
This latest tariff threat exemplifies Trump’s continued reliance on trade policy as a central foreign policy instrument. International trade experts express concern that the unpredictability creates business uncertainty and market volatility regardless of whether specific threats are ultimately implemented.
