Donald Trump Raises Tariffs on South Korea to 25% Over Trade Deal Delay

Washington: US President Donald Trump announced on Monday that the import duty on a variety of products coming from South Korea has been increased to 25 percent. Under this, the already applicable 15% tariff on cars, wood, medicines and other goods has been increased to 25%. Trump has taken this step because South Korea's legislature is not passing the "historic trade agreement" that the two countries concluded last year.

Why did Trump increase tariffs?

Trump has said that South Korea's Parliament has not implemented the bilateral trade agreement, which was agreed upon in July 2025 and reaffirmed in October. He tweeted on his social platform, Truth Social, that trade agreements are important and if America quickly reduces its tariffs then the same is expected from its trading partners.

What was South Korea's reaction?

South Korean officials have said that they were not officially informed of the announcement. In response to this, the Industry Minister of South Korea will soon visit America for talks. The Korean Parliament is also now trying to speed up the bill process related to investment and trade agreements so that the dispute can be resolved.

Have the markets been affected?

Shares of South Korean automobile and pharmaceutical sector companies started falling after the announcement of tariffs, which put pressure on investors and the market. For example, Hyundai Motor shares fell by about 4%. The reason for this is believed to be sudden change and uncertainty in trade policies.

Will this affect India or other countries also?

This strict policy of the Trump administration does not seem to be limited only to South Korea. In the past he has also warned Canada and Europe of tariffs, and hinted at changes in world trade policies. Experts believe this could lead to further imbalances in the global trade balance, especially if trade agreements with key partners are not completed on time.

Experts believe that this decision may increase tension in trade relations between the two countries and may lead to instability in Asian markets. At present, investors and businessmen are keeping an eye on how the Seoul government responds to this pressure and in which direction the talks move forward.