Trump will raise tariffs on South Korean cars

US President Donald Trump/Photo: White House via Wikimedia Commons

JAKARTA - US President Donald Trump will raise "retaliatory" tariffs and car import duties against South Korea to 25 percent from 15 percent.

Trump reasoned that this was done because the South Korean parliament had not completed the domestic process to implement the bilateral trade agreement.

Trump made the surprise announcement via social media, saying his administration was moving quickly to reduce tariffs after the trade deal and hoped that partners would act similarly, which observers considered reflecting his push for Seoul to immediately realize its investment commitments.

The announcement has prompted the Korean presidential office, Cheong Wa Dae, to decide to send Industry Minister Kim Jung-kwan to the US to discuss with US Trade Minister Howard Lutnick.

"President Lee and I reached a major agreement for both countries on July 30, 2025, and we reaffirmed this provision when I was in Korea on October 29, 2025. Why hasn't the Korean Parliament approved it?" Trump wrote on Truth Social as reported by ANTARA from Yonhap, Tuesday, January 27.

"Because the Korean Parliament has not ratified our historic trade agreement, which is their prerogative, I am hereby raising the TARIFFS of South Korea on cars, wood, pharmaceuticals, and all other reciprocal TARIFFS, from 15 percent to 25 percent," he said.

It is not yet known for sure when Trump plans to impose the tariff increase. The White House did not immediately respond to a request for comment.

He appeared to be referring to a bill introduced by the ruling Democratic Party to the National Assembly in November to implement bilateral trade and investment deals. The bill has not been passed by parliament.

In November, a joint fact sheet contained trade, investment, and security agreements, including South Korea's commitment to invest US$350 billion (Rp5.882 trillion) in the US in return for a reduction in reciprocal tariffs and automotive tariffs to 15 percent by Washington.

The document also includes the Trump administration's approval of Seoul's efforts to acquire nuclear-powered submarines and its support for Korea's efforts to secure civilian uranium enrichment and the right to reprocess spent nuclear fuel for peaceful purposes.

"Our trade agreements are very important for America. In each of these agreements, we have acted quickly to reduce our TARIFFS in accordance with the agreed Transactions. Of course, we expect our trading partners to do the same," he wrote.

Source: Yonhap-OANA