Trump says he’s raising tariffs on South Korea because it’s ‘not living up’ to trade agreement

By Elisabeth Buchwald, CNN

(CNN) — President Donald Trump announced on Monday he is raising tariffs on goods from South Korea to 25% from 15%.

“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%,” Trump wrote in a Truth Social post.

It’s unclear when the new tariffs would take effect. The White House did not immediately respond to CNN’s request for comment.

Seoul plans to “respond calmly” and convey “its willingness to fulfill the tariff agreement” to the US,” presidential spokesperson Kang Yoo-jung said in a statement on Tuesday.

But Korean officials are now rushing to meet Trump administration officials in person. The country’s trade minister has moved up a scheduled US trip and will meet with Trade Representative Jamieson Greer in the coming days, Kang said, while the industry minister will also add a trip to the US to meet Secretary of Commerce Howard Lutnick, once he concludes his current Canada visit.

South Korea’s benchmark index, Kospi, sunk over 1% before rebounding in early hours of trading on Tuesday. Hyundai, the country’s automobile giant, plunged more than 2.2% as of 9:47 am local time.

South Korea is one of the United States’ top sources of foreign goods, shipping $132 billion worth of goods to the country in 2024, according to Commerce Department data. Top exports to the US include cars and car parts as well as semiconductors and electronics. These goods are at risk of getting more expensive from the higher levies.

Trump announced a trade agreement with South Korea in July that prevented tariffs on goods from the country from going from 10% to 25%. The agreement also called for preferential rates on imported cars, among other goods.

Trump’s ability to increase across-the-board tariffs on goods from South Korea or other countries could be hindered by the outcome of a landmark tariff case currently before the Supreme Court.

The case will determine whether Trump had the legal authority to impose country-specific sweeping tariffs. If the justices side against the administration, Trump would likely not be able to immediately change tariff rates for all goods coming from specific countries.

Trump’s announcement follows a string of recent tariff threats, including a 100% tariff on Canadian goods and an additional 10% levy on countries opposed to his Greenland ambitions, the latter of which he walked back.

CNN’s Gawon Bae and John Liu contributed reporting.

This story has been updated with additional context and developments.

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