US Imposes Steep 25 Percent Tariffs on South Korean Exports Shocking Industries and Sparking Intense Trade Negotiations

Listeners, welcome to the latest episode of "South Korea Tariff News and Tracker." As of June 25, 2025, the US-South Korea trade landscape is in the midst of remarkable changes, following a series of tariffs and policy shifts announced by former President Donald Trump. Here’s what you need to know today. Just this spring, the US shook international trade by slapping a 25 percent tariff on South Korean exports. According to Source of Asia, this is the steepest tariff the US has ever placed on a partner with a Free Trade Agreement—even higher than current rates for Japan and the European Union. The decision, announced in early April, blindsided many South Korean businesses. Key sectors feeling the heat include automotive, semiconductors, and steel and aluminum. South Korean carmakers Hyundai and Kia, in particular, are under pressure, as vehicles are now at risk of facing tariffs as high as 200 percent on some models. The impact is significant, considering that almost half of South Korea’s automotive exports—more than $34 billion last year—went directly to the US. The situation for steel and aluminum producers is equally challenging. On June 3, President Trump signed a proclamation doubling the Section 232 tariff on steel and aluminum imports from 25 percent to 50 percent, effective June 4. The administration’s stated rationale is to protect national security and vital industries from what it calls unfair trade practices and global overcapacity. White House fact sheets point out that these enhanced tariffs specifically target the steel and aluminum content of imported goods, with additional tariffs or exceptions applying to other components. The tariff announcements led to confusion and urgent negotiations. Yonhap News reports that a last-minute revision saw the reciprocal tariff rate for South Korea corrected from 26 percent down to 25 percent after a late-night push from South Korean officials. Even a single percentage point meant billions in potential revenue, underscoring the stakes. Despite these efforts, US government sources confirm that the 25 percent rate is set and will apply broadly, with only a handful of products or country-specific arrangements exempted. Meanwhile, a flat 10 percent tariff on all imports from all countries—except for China and Hong Kong—went into effect on April 10. This rate is subject to a 90-day review, but individual sector tariffs, such as those targeting the auto industry, remain a primary concern for South Korean exporters. The result is that South Korean businesses, especially those in high-value manufacturing and advanced technology, are scrambling to restructure supply chains and seek possible workarounds or new markets. Trade talks between Seoul and Washington are ongoing, but as the American Action News and other sources confirm, the South Korean government considers the current tariffs a "serious" situation, and officials are exploring all diplomatic and economic options to mitigate the pressure on e This content was created in partnership and with the help of Artificial Intelligence AI.