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Trump Tariffs South Korea Again as Trade Deal Approval Remains Unfinished

by Rena Tran
January 28, 2026
in Economy
Trump Tariffs South Korea Again as Trade Deal Approval Remains Unfinished

President Donald Trump said Monday that the United States will move to increase tariffs on South Korean goods after the country’s National Assembly failed to approve a trade framework announced last year. The warning revives a central feature of Trump’s economic strategy, the aggressive use of tariffs to pressure trading partners into faster concessions.

In a social media post, Trump said tariffs would rise on South Korean autos, lumber, and pharmaceutical products. He added that the rate on most other imports from South Korea would increase to 25 percent from the current 15 percent. The president framed the move as a response to what he described as an imbalance in how quickly the two countries implemented the agreement.

A deal announced, but not yet ratified

The trade framework at the center of the dispute was announced in July 2025 and reaffirmed during Trump’s October visit to South Korea. Under U.S. law, Trump was able to impose tariffs by declaring an economic emergency, effectively bypassing Congress. South Korea’s system, however, requires legislative approval before trade commitments can take effect.

“Our trade deals are very important to America,” Trump wrote, arguing that Washington had already reduced its tariffs in line with the agreement. He said the United States expected its partners to move at a similar pace.

The renewed threat underscores how Trump tariffs South Korea have become part of a broader pattern. The administration has repeatedly used tariff announcements as leverage, even when negotiations are still in progress, creating uncertainty for exporters, investors, and financial markets.

Investment promises and strained relations

Trump has previously linked tariffs on South Korea to pledges by Seoul to invest roughly $350 billion in the U.S. economy over several years. Those commitments include projects aimed at revitalizing American shipyards and expanding advanced manufacturing.

Despite those pledges, relations between the two allies have been uneven. Tensions flared last year when U.S. immigration authorities conducted a raid at a Hyundai manufacturing facility in Georgia, detaining hundreds of workers. The incident drew criticism from South Korean officials and highlighted the political risks surrounding trade and investment ties.

South Korea’s presidential office said Monday that it had not received formal notice from Washington regarding the tariff increases. In a statement, officials said Industry Minister Kim Jung Kwan, currently in Canada, plans to travel to the United States soon for talks with Commerce Secretary Howard Lutnick. The president’s chief policy aide, Kim Yong Beom, is expected to convene an internal meeting to assess the situation.

Tariffs as a recurring negotiating tool

The latest announcement suggests that tariff brinkmanship will remain a defining feature of Trump’s second term. In recent weeks, the president has floated or threatened new tariffs involving multiple partners, only to pause or reverse course after high level talks.

Earlier this month, Trump warned of tariffs on several European countries tied to broader geopolitical demands, before easing his stance following meetings at the World Economic Forum in Switzerland. He has also threatened steep duties on Canadian goods if Ottawa deepens trade ties with China.

Supporters argue that this approach forces faster negotiations and draws foreign investment into the United States. Critics counter that frequent tariff threats disrupt supply chains, raise costs for businesses, and undermine long term trust in U.S. trade policy.

Global implications and legal questions

Many of Trump’s high profile trade frameworks remain unfinished. The European Parliament has yet to approve a proposed agreement that would impose a 15 percent tariff on most goods exported from the European Union’s member states. Meanwhile, the United States is preparing to renegotiate its revised trade pact with Canada and Mexico later this year.

There are also unresolved legal questions surrounding Trump’s tariff authority. Ongoing investigations under Section 232 of the Trade Expansion Act and a pending Supreme Court case could determine whether the president exceeded his powers by invoking emergency statutes to impose broad based tariffs.

For now, the renewed focus on Trump tariffs South Korea signals continued volatility in global trade. As negotiations drag on and approvals stall, businesses on both sides of the Pacific are left navigating a policy environment where trade rules can shift with little warning.

No related posts.

Rena Tran

Rena Tran

Staff writer and editorial researcher at Millionaire News, a business publication covering entrepreneurs, founders and executives across global markets. Rena covers founder stories, startup ecosystems and emerging business leaders across Asia, the Middle East and beyond.

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