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Trump Slaps 25% Tariffs on South Korean Autos, Pharma in Trade Spat

US President Donald Trump announced a significant increase in tariffs on a wide range of South Korean goods, including key exports like automobiles and pharmaceuticals. The move reverses a previous agreement and cites stalled legislative action on a historic trade deal by South Korea. This escalation occurs as the US Supreme Court deliberates a case challenging Trump's authority to impose such tariffs without congressional approval. The decision could impact billions in trade, as South Korea is a major source of US imports.

Key Points: Trump Hikes South Korea Tariffs to 25% Over Trade Deal

  • Tariffs raised from 15% to 25%
  • Targets autos, lumber, and pharmaceuticals
  • Reversal of July's trade agreement
  • Follows multiple unexecuted tariff warnings
  • Move faces Supreme Court scrutiny
2 min read

Trump hikes tariffs on South Korean autos, pharma to 25% over stalled trade deal

US President Donald Trump raises tariffs on South Korean goods like autos and pharmaceuticals from 15% to 25%, escalating trade tensions.

"I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%. - Donald Trump"

Washington DC, January 27

US President Donald Trump on Monday announced an increase in tariffs on a wide range of South Korean goods, raising them to 25 per cent from the previous 15 per cent.

Announcing the move on Truth Social, Trump said, "Because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%." It remains unclear whether the revised tariff rates have already come into force.

The decision comes as South Korea remains one of the United States' leading sources of imported goods, exporting USD 132 billion worth of products to the US in 2024, according to Commerce Department data. Major shipments include automobiles and auto parts, along with semiconductors and electronics, sectors that could now face higher prices due to the increased duties.

The tariff hike marks a reversal from a trade agreement announced in July, when Trump said the US would apply a uniform 15 per cent tariff on goods imported from South Korea, a rate that was 10 percentage points below what he had earlier threatened.

As part of that agreement, Trump also said South Korea had agreed to "give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President."

Trump's latest move follows at least three earlier tariff warnings by his administration that were not implemented, including a proposed 10 per cent levy on Canada after Ontario's anti-tariff World Series advertisement, potential tariffs on European nations over Greenland, and a 100 per cent duty on Canada that was floated on Saturday.

The escalation also comes amid legal scrutiny of Trump's trade powers. The US Supreme Court heard arguments in November in a challenge to tariffs imposed by Trump without congressional approval, with several justices questioning whether he had the authority to introduce such measures unilaterally.

The court has not yet delivered a ruling in the matter.

- ANI

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Reader Comments

P
Priya S
The auto and pharma sectors being targeted is significant. Many Indian companies have partnerships in Korea. Hope our Commerce Ministry is watching this closely and preparing contingency plans. Global supply chains are so fragile now.
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Aman W
Trump's policy seems to change every other week. First 25%, then 15%, now back to 25%. How can any country plan long-term investments with such uncertainty? It hurts businesses on both sides.
S
Sarah B
While I understand the need for fair trade, announcing this on Truth Social and the constant flip-flopping undermines the seriousness of international diplomacy. The "$350 Billion Dollars for Investments" part sounds more like a dictate than an agreement.
V
Vikram M
Korean cars like Hyundai and Kia are very popular here. If their costs go up in the US, will they focus more on the Indian market? Could be an opportunity for 'Make in India' if we play our cards right.
K
Karthik V
The Supreme Court case is key. No single person should have so much power to disrupt global trade on a whim. Hope they rule to check this executive overreach. It sets a dangerous precedent for the world.

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