Washington: U.S. President Donald Trump has announced an increase in tariffs on imports from South Korea, raising them to 25 percent. The decision affects various goods, including automobiles, processed wood, and pharmaceuticals. The move comes as a response to what Trump describes as South Korea's failure to implement a trade agreement reached last year.
According to Thai News Agency, President Trump expressed his dissatisfaction through social media, emphasizing that despite reaching a significant agreement with South Korean President Lee Jae-myung on July 30, 2025, and reaffirming it during his visit to South Korea on October 29, 2025, the South Korean legislature has not fulfilled its commitments. As a result, Trump has decided to increase the tariffs from 15% to 25%.
Sources have suggested that the tariff hike may also be influenced by President Trump's discontent with a South Korean investigation into Coupang, a US-based e-commerce company listed on the New York Stock Exchange. Coupang has alleged unfair treatment by South Korean authorities. The original trade agreement included a stipulation for South Korea to invest up to $350 billion in the US in return for reduced import tariffs.
The economic repercussions of this decision were immediately felt as South Korea's KOSPI index experienced a 1.19 percent drop before recovering. Additionally, the South Korean won weakened by 0.5 percent against the US dollar, with the exchange rate currently standing at approximately 34.15 baht per US dollar.
The South Korean presidential office has reported that it has not yet received official notification regarding the tariff increase. Meanwhile, the country's Minister of Industry, who is currently in Canada, plans to visit the United States shortly to discuss the matter with US Commerce Secretary Howard Lutnick. In an effort to address the situation, South Korea's ruling party has expressed its intention to collaborate with opposition parties to expedite the passage of five pending bills in parliament, aimed at facilitating the proposed investment in the United States. The South Korean parliament is set to reconvene on February 3rd.