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Trump Raising South Korea Tariffs

  A recent announcement could result in President Trump raising South Korea tariffs to 25%. In a January 26 social media post, Trump threatened to increase South Korea’s import levies from 15% to 25%. The president further stated that the increase will apply to imports, including automobiles, lumber, and pharmaceutical products. Goods subject to Trump’s original baseline reciprocal tariffs will also be affected by the duties.  The US initially lowered tariffs on South Korean goods from 25% to 15% as part of a trade deal in July 2025 . South Korean officials were caught off guard by the announcement and are planning to speak with the US about the issue. Why Is Trump Raising Tariffs on South Korean Imports? President Trump’s primary reason for raising tariffs on South Korea is its failure to ratify a trade deal. In 2025, both countries agreed on a trade and investment framework valued at approximately $350 billion. The deal included the US lowering tariffs on specific Korean imp...

US Reducing South Korea’s Tariffs

  A bilateral trade deal is resulting in the US reducing South Korea’s tariffs on imports. On December 1, Commerce Secretary Howard Lutnick announced that the US will reduce levies to 15% retroactively to November 1. Previously, the US imposed tariffs of up to 25% on South Korean automobiles and other goods. The 25% came from duties the US used under Section 232 of the Trade Expansion Act. Reciprocal tariffs that President Trump imposed under the IEEPA (International Emergency Economic Powers Act) also added to the 25%. In addition to reducing duties to 25%, tariffs on airplane parts from South Korea will be eliminated. The deal will also cap future tariffs on sectors such as semiconductors and Pharmaceuticals at 15%. Why Is The US Reducing South Korea’s Tariffs? The main reason for the tariff reduction is a trade deal between the two countries. Along with the US reducing levies, South Korea will invest approximately $350 billion into strategic US industries. Some of these industri...