Washington: U.S. President Donald Trump announced on Monday that he is raising "reciprocal" tariffs and auto duties on South Korea to 25 percent from the previous 15 percent. This decision comes as he criticized South Korea's legislature for not completing the domestic process required to implement a bilateral trade deal.
According to Yonhap News Agency, Trump's unexpected announcement was made through a social media post. He noted that his administration has acted "swiftly" to lower tariffs following trade deals and expects trading partners to reciprocate. Observers suggest this might indicate his desire for South Korea to quickly fulfill its investment pledges.
The announcement has led South Korea's presidential office, Cheong Wa Dae, to convene an interagency meeting to decide on a response. They have also decided to send Industry Minister Kim Jung-kwan, currently in Canada, to the United States for discussions with Commerce Secretary Howard Lutnick.
Trump questioned why South Korea's legislature has not yet approved the trade agreement reached on July 30, 2025, with President Lee, despite reaffirming the terms during his visit to Korea on October 29, 2025. He indicated that the lack of enactment of the trade agreement by South Korea's legislature has prompted him to increase tariffs on a range of goods, including autos, lumber, and pharmaceuticals.
The timeline for the implementation of these increased tariffs remains unclear as the White House has not responded to requests for further information. The delay in South Korea's legislative approval involves a bill submitted by the ruling Democratic Party to implement the bilateral trade and investment deal, which has not yet passed.
The joint fact sheet released in November outlined the agreements between the two countries, including South Korea's commitment to investing $350 billion in the U.S. in exchange for Washington lowering reciprocal tariffs and auto levies to 15 percent. The document also mentioned U.S. support for South Korea's acquisition of nuclear-powered submarines and its pursuit of civil nuclear capabilities.
Trump's announcement could potentially destabilize the bilateral relationship, which had been enjoying some certainty following the protracted negotiations. The tariff increase is seen as an effort to pressure South Korea to expedite its end of the trade deal, particularly regarding investment commitments.
South Korea is expected to invest up to $20 billion in the U.S. this year under the trade deal, but fluctuations in the Korean currency against the U.S. dollar may impact this commitment. Observers believe Trump is aware of potential delays in South Korea's investment.
In his announcement, Trump emphasized the importance of trade deals to America, noting the swift reduction of U.S. tariffs in accordance with agreed transactions and the expectation for trading partners to reciprocate.
The announcement coincides with concerns in Washington over South Korea's investigation into Coupang Inc., a U.S.-listed company, following a significant customer data leak. U.S. lawmakers and investors have criticized the investigation as "discriminatory," and the State Department has expressed concerns over South Korea's regulatory actions affecting online platform companies.