President Donald Trump announced on Monday that he is **increasing tariffs on South Korean goods** from 15% to 25%. He cited that the **Korean legislature hasn’t fully enacted the trade agreement** the two countries signed last year.  

> “Because the Korean Legislature hasn’t enacted our Historic Trade Agreement… I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” Trump wrote on Truth Social.

### South Korea Responds
Seoul says it plans to **“respond calmly”** and convey its willingness to honor the agreement. Officials are now **expediting visits to the U.S.**: the trade minister will meet Trade Representative Jamieson Greer, and the industry minister will meet Commerce Secretary Howard Lutnick.  

### Market Impact
South Korea’s **Kospi index fell over 1%** before recovering in early trading. Hyundai, one of the country’s largest exporters, **dropped more than 2.2%** in early morning trading. South Korea exported **$132 billion in goods** to the U.S. in 2024, including cars, semiconductors, and electronics — all potentially affected by the higher tariffs.

### Background
- Trump previously signed a **trade agreement with South Korea** in July 2025, preventing tariffs on some goods from rising from 10% to 25%, including preferential rates for cars.  
- The ability to impose country-specific tariffs may be affected by a **Supreme Court case** on whether the president can impose sweeping tariffs.  

### Context
This move follows other recent tariff threats, including **a proposed 100% tariff on Canadian goods** and levies related to Greenland. Some threats have since been walked back.  

South Korea’s government and industry are now moving quickly to engage U.S. officials and prevent disruption to trade and exports.

Trump Raises Tariffs on South Korea to 25% Over Trade Agreement Dispute