Trump Increases Tariffs to 25% on South Korean Imports

U.S. President Donald Trump has announced a raise in tariffs to 25% on products imported from South Korea, accusing Seoul of failing to comply with a trade agreement signed last year.

These new tariffs will replace the current 15% and will primarily affect cars, wood, and pharmaceuticals. Trump criticizes South Korean lawmakers for being too slow to ratify the agreement, while the United States has already lowered its own tariffs.

South Korea claims it has not been officially notified and seeks prompt discussions. Its Minister of Industry will soon travel to Washington to talk about the matter. The Kospi index initially dropped on Tuesday but later rebounded as exporter stocks rose.

The agreement includes a $350 billion investment from South Korea into the United States. It is currently under review in the South Korean parliament, with a likely adoption in February.

Trump frequently uses tariffs as a political leverage. He recently threatened Canada with very high tariffs if it pursued a trade deal with China, which Canada denies.

He has also threatened several countries, including the United Kingdom, following opposition to a U.S. proposal regarding Greenland, before retracting the threat after progress was made on the issue.

Source: BBC