Trump said in a post on Truth Social that South Korea President Lee Jae Myung and him had reached a deal in July 2025, and reaffirmed the terms in Oct. 2025, but it had not yet been approved.
- Trump said the tariffs would be applicable to industries such as autos, lumber, and pharmaceuticals as well as to all other reciprocal tariffs.
- In Oct. 2025, the U.S. and South Korea reached a trade agreement wherein the Asian country committed to a $350 billion investment in the U.S., including $200 billion in phased cash contributions.
- Over the weekend, Trump threatened a 100% tariff on Canadian imports over a trade deal with China.
American President Donald Trump said on Monday that U.S. tariffs on South Korea would increase from 15% to 25%, citing the country's failure to live up to its deal with the U.S.
Trump said in a post on Truth Social that tariffs on South Korean imports would go up from current levels, and would be applicable to industries such as autos, lumber, and pharmaceuticals as well as to all other reciprocal tariffs.
“South Korea's Legislature is not living up to its Deal with the United States,” Trump said in the post. “President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn't the Korean Legislature approved it?”
The announcement comes as the U.S. Supreme Court is set to issue a decision on the legality of Trump’s tariffs.
Trade Discussions
In Oct. 2025, the U.S. and South Korea reached a trade agreement wherein the Asian country committed to a $350 billion investment in the U.S., including $200 billion in phased cash contributions. Funds were agreed to be deployed by 2029. In exchange, Trump agreed to reduce tariffs on South Korea, matching terms with Japan.
However, the deal terms have not yet been finalized from South Korea. “Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to. We, of course, expect our Trading Partners to do the same,” Trump said in the post.
“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%,” the President added.
Over the weekend, Trump threatened to impose a 100% tariff on Canadian imports over a trade deal with China.
Market Reaction
U.S. equities closed in green on Monday. The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, closed up 0.51%, the Invesco QQQ Trust ETF (QQQ) closed 0.44% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended the day 0.64% higher. The tech-heavy Nasdaq 100 (NDX) ended the day 0.42% up.
Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘extremely bearish’ territory.
Meanwhile, the iShares MSCI South Korea ETF (EWY), which tracks South Korean equities, ended the day 0.55% lower and slipped 1.45% in after-market hours.
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