Trump Takes Aim at South Korea with 25% Tariff Warning Over Parliament Delays

Donald Trump has taken aim at South Korea with a warning of 25% tariffs on major exports, blaming parliament delays in implementing a trade agreement from 2024. The president’s announcement targeted automobiles, lumber, and pharmaceutical products.
The trade framework was finalized after months of negotiations between Trump and South Korean President Lee Jae Myung in October 2024, featuring reciprocal concessions including reduced American tariffs. However, disagreements about implementation have prevented full enactment.
South Korea’s government disputes the characterization of its obligations, maintaining that the agreement was structured as a non-binding memorandum of understanding. However, political pressure is forcing reconsideration, with both parties now pledging to advance relevant legislation.
The automotive sector faces the greatest risk from potential tariff increases, accounting for 27% of South Korean exports to the United States. Stock market volatility following Trump’s announcement reflected investor concern about the threat’s implementation.
This tariff threat fits within Trump’s broader strategy of using trade policy as diplomatic leverage in his second term. While not all threatened tariffs are implemented, the Atlantic Council’s international economics chair notes that volatility itself carries economic costs.