Trump imposes 25% tariffs on South Korean goods: Reasons and repercussions
In a new escalation of his protectionist trade policies, US President Donald Trump announced his decision to raise tariffs on a wide range of goods and products imported from South Korea, as part of economic pressure to enforce previous trade agreements.
On Monday, Trump revealed via his official Truth Social account his intention to increase tariffs from 15% to 25%, indicating that this decision comes in response to what he described as the South Korean parliament's slowness in activating a trade agreement that he described as "historic" and which had been concluded between Washington and Seoul.
Details of the decision and the affected sectors
The US president explained that the new tariff increase would target vital sectors of the South Korean economy, specifically mentioning the automotive, timber, and pharmaceutical industries, in addition to all other reciprocal tariffs. Trump stated in his announcement: "Since the Korean parliament has not yet ratified our historic trade agreement, which is within its power, I am announcing an increase in tariffs… from 15% to 25%.".
Background to trade tensions between Washington and Seoul
This threat is not a recent development, but rather the culmination of a long history of arduous trade negotiations between the United States and South Korea. Trump has consistently criticized the US trade deficit with Seoul, arguing that previous agreements were unfair to American industry. The US-South Korea Free Trade Agreement (KORUS) is the cornerstone of economic relations between the two countries, but the US administration has repeatedly sought to amend its terms to ensure greater access to Korean markets for American products, particularly automobiles.
Expected economic and political repercussions
This decision is expected to have a significant impact on South Korea's export-dependent economy, with the United States being a major trading partner. The Korean automotive sector, represented by giant corporations, may be the hardest hit due to its substantial exports to the US market. Furthermore, the inclusion of pharmaceuticals and timber broadens the scope of the impact to encompass multiple industrial sectors.
Politically, this decision could strain diplomatic relations between the two traditional allies at a time when Washington needs close cooperation with Seoul to address security challenges on the Korean Peninsula and manage the North Korean issue. Observers believe Trump's use of tariffs is a negotiating tactic aimed at pressuring the South Korean parliament to expedite the ratification of the outstanding trade agreements, reflecting an "America First" approach that prioritizes immediate economic interests in international dealings.
