US President Donald Trump has announced he is raising tariffs on South Korean imports to 25% after accusing Seoul of “not living up to” a trade deal signed last year.
In a post on social media, Trump said he would raise tariffs on South Korea by 15% on a number of products, including automobiles, lumber, pharmaceuticals and “all other reciprocating tariffs.”
Trump said South Korean lawmakers have been slow to approve the deal, while “we have acted quickly to reduce our tariffs in line with what was agreed upon on the transaction”.
South Korea says it was not officially informed of the decision to raise tariffs on some of its goods and wants immediate talks with Washington on the issue.
It said South Korea’s Industry Minister Kim Jung-kwan, who is currently in Canada, will visit Washington as soon as possible to meet US Commerce Secretary Howard Lutnick.
South Korea’s benchmark Kospi stock index fell Tuesday morning, but was later trading about 1.8% higher as shares of major exporters recovered.
Seoul and Washington reached a deal last October, which included a pledge by South Korea to invest $350 billion (£256 billion) in the US, some of which will be spent on shipbuilding.
The following month, the two countries agreed that the US would reduce tariffs on some products after South Korea began the process of approving the deal.
The agreement was presented to the National Assembly of South Korea on November 26 and is currently being reviewed. According to local media, it is likely to be passed in February.
Tariffs are paid by companies that import products. In this case, American companies would pay a 25% tax on goods purchased from South Korea.
Trump has frequently used tariffs to implement foreign policy during his second term in the White House.
On Saturday he threatened to impose 100% tariffs on Canada if it strikes a trade deal with China.
On Monday, Chinese officials said its “strategic partnership” agreement with Canada is not meant to undermine other countries.
Canadian Prime Minister Mark Carney has said that his country is not pursuing a free trade agreement with China and has “never” considered one.
He said Canadian officials have made their position clear to their American counterparts.
Earlier, Trump had said he would impose import taxes on eight countries – including the UK – which had opposed US plans to seize Greenland, an autonomous territory in the Kingdom of Denmark that is a member of NATO.
He later backed off the threat of tariffs on Greenland, citing progress toward a “future agreement” on the island, but the episode strained US relations with Denmark and other NATO allies.
