US President Donald Trump has threatened to raise tariffs on goods imported from South Korea to 25%, saying the country’s legislature has not codified the trade deal the two nations reached last year.
In a social media post on Monday, Trump said the higher rate would apply to autos, lumber, pharmaceutical products and other “reciprocal tariffs”. Under the existing arrangement, the tariff rate on South Korean exports is 15%.
If carried out, the move could hit major South Korean exporters to the US. The report cited Hyundai Motor Co as one example, noting it shipped about 1.1 million vehicles to the US in 2024. Hyundai shares fell sharply on Tuesday before trimming losses amid expectations the threat may not be fully implemented.
The announcement is the latest in a series of tariff threats Trump has directed at allies in recent weeks. At the same time, the report noted that a portion of his past tariff threats have been scaled back or reversed.
South Korea has been highlighted by the US as a key ally for boosting defence spending, but frictions remain over the pace of Seoul’s investment commitments to the US, regulations seen as constraining US digital commerce firms, and unresolved details around shipbuilding and nuclear-submarine related cooperation.
Following last year’s trade deal announcement, a domestic bill described as a “special law on strategic investment with the US” was introduced in South Korea’s parliament in late November. Once passed, it would give the government legal authority to manage and carry out large-scale investments pledged to the US, but the bill has not been fast-tracked.
South Korea’s presidential office said it has not received any formal notification or detailed explanation from the US regarding Trump’s post.
Industry Minister Kim Jung-kwan plans to travel to the US as soon as possible to discuss the issue with Commerce Secretary Howard Lutnick, while Trade Minister Yeo Han-koo is also expected to visit for talks with US Trade Representative Jamieson Greer.
South Korean officials said any tariff increase would require administrative steps, including publication in the Federal Register, before taking effect. Seoul said it plans to convey its commitment to implementing the tariff agreement and to accelerate follow-up measures.
