President Donald Trump has announced an increase in tariffs on imports from South Korea into the United States. The tariffs, which will rise from 15 per cent to 25 per cent, affect key sectors including automobiles, lumber, and pharmaceuticals. Trump cited concerns that the South Korean legislature is not fulfilling its obligations under the existing trade agreement with Washington as the reason for the tariff hike. The announcement was made via social media on Monday.
Trump stated that the decision to raise tariffs was a direct response to the South Korean legislature’s alleged failure to enact the ‘Historic Trade Agreement’ between the two countries. He emphasised that while it is within the legislature’s right to not enact the agreement, the United States would take reciprocal measures. The increased tariffs will apply to all reciprocal tariffs, impacting a wide range of goods beyond the initially specified sectors.
The move is likely to escalate trade tensions between the United States and South Korea, potentially leading to retaliatory measures from Seoul. Businesses in both countries will face increased costs and uncertainty as a result of the tariff increase. The long-term effects on trade relations and economic cooperation remain to be seen as both parties navigate this evolving situation.
