Business

US President Donald Trump has declared that he will raise tariffs on imports from South Korea to 25%. He made this announcement after accusing South Korea of failing to uphold a trade agreement made last year. In a social media message, Trump stated that he would increase tariffs from 15% on various products, including cars, lumber, and medications, as well as “all other Reciprocal TARIFFS.” Trump criticized South Korean lawmakers for their slow approval of the deal, stating, “we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to.” South Korea responded by saying it had not received any formal notice about the tariff increase and requested urgent discussions with the US. The country’s Industry Minister Kim Jung-kwan, who is currently in Canada, plans to travel to Washington soon to speak with US Commerce Secretary Howard Lutnick. Following the news, shares of some South Korean exporters dropped, with Hyundai, the car manufacturer, seeing a decline of about 2.5%. Stocks linked to the pharmaceutical and timber industries also fell. Last October, Seoul and Washington reached a trade deal where South Korea promised to invest $350 billion (£256 billion) in the US, which would include funding for shipbuilding. The following month, both nations agreed that the US would decrease tariffs on certain products once South Korea began the approval process for the deal. This agreement was presented to South Korea’s National Assembly on November 26 and is currently under review. Local media reports suggest it will likely be approved in February.