President Donald Trump announced Monday that he is raising tariffs on South Korea to 25 percent because the country’s government has failed to implement the agreed terms of its trade deal with the United States.
Trump announced the action on Truth Social:
Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to. We, of course, expect our Trading Partners to do the same.
South Korea’s Legislature is not living up to its Deal with the United States. President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn’t the Korean Legislature approved it?
Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%. Thank you for your attention to this matter!
In October, Trump announced the deal was “pretty much finalized” while attending a dinner during the Asia-Pacific Economic Cooperation (APEC) forum in Gyeongju, South Korea, as Breitbart News noted.
“We discussed some other things to do with national security, et cetera. And I think we came to a conclusion on a lot of very important items,” he said.
One of South Korean President Lee Jae-myung’s aides, Kim Yong-beom, said the sides were lowering the 25 percent tariff rate to 15 percent as part of the agreement, which also included South Korea committing to invest $350 billion in the United States.
“Trump and Lee reportedly agreed that South Korea can structure these investments in two funds — a $200 billion general investment account to be funded in $20 billion annual installments, plus a more urgent $150 billion fund devoted to investments in American shipbuilding,” Breitbart News National Security Deputy Editor John Hayward noted.
Under the deal, pharmaceuticals and lumber were reportedly given most-favored-nation status.
Trump’s move to raise auto tariffs is significant, considering South Korea was eager to lower the initial 25 percent tariff before the deal was agreed to.
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