Trump Threatens to Hike South Korea Tariffs to 25 Percent Amid Trade Deal Ratification Delay, Potentially Impacting Global Economy

Welcome to South Korea Tariff News and Tracker. President Donald Trump has threatened to hike tariffs on South Korean imports from 15 percent to 25 percent, targeting autos, lumber, pharmaceuticals, and other goods, because Seoul's National Assembly hasn't yet ratified a key trade deal, according to The Star reporting on his Monday social media post. Trump accused South Korea of not living up to the agreement, stating, “Because the Korean Legislature hasn’t enacted our Historic Trade Agreement... I am hereby increasing South Korean TARIFFS.” This escalates tensions from a November 2025 memorandum where South Korea pledged $350 billion in US investments—$200 billion in cash installments and $150 billion for shipbuilding—in exchange for those tariff cuts to 15 percent, as detailed by Anadolu Agency and The Korea Times. South Korea's presidential office called it a surprise, with no prior US notification, and dispatched Industry Minister Kim Jung-kwan to Washington for urgent talks. Yesterday's first round with US Commerce Secretary Howard Lutnick ended without a deal, though they agreed to continue today, Yonhap News reports via Anadolu Agency. Kim told reporters discussions were extensive but inconclusive, stressing Seoul's commitment to the investment pledge. US Treasury Secretary Scott Bessent reinforced Washington's stance, saying no deal exists without National Assembly ratification, per UPI. The stakes are high: South Korea's auto sector makes up 27 percent of its US exports, and Bank of Korea analysis warns a jump to a 20.3 percent average tariff rate could slash 2025 growth by 0.4 percentage points, potentially dropping it to the mid-1 percent range from the projected 2 percent, according to Seoul Economic Daily. Analysts at Eurasia Group expect quiet diplomacy to avert implementation, noting Trump's history of backing down after threats. Hankyoreh's Washington correspondent laments this as endless “tariff purgatory,” where US promises evaporate amid delays, violating the MOU's terms on tariff reductions tied to bill introduction, not passage. American Action Forum estimates reimposed 25 percent duties could add $6 billion in annual costs. Listeners, stay tuned as talks unfold—this could reshape bilateral trade. Thank you for tuning in, and please subscribe for the latest updates. This has been a Quiet Please production, for more check out quietplease.ai. For more check out https://www.quietperiodplease.com/ Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q This content was created in partnership and with the help of Artificial Intelligence AI.