Trump Raises U.S. Tariffs on Korean Exports to 25%, Seoul Markets Slide
Updated (2 articles)
Trump’s tariff increase targets key Korean sectors President Donald Trump announced via social media that U.S. tariffs on South Korean automobiles, lumber, pharmaceuticals and “all other” goods will rise from 15% to 25% [1]. The move aims to pressure Korean exporters and aligns with broader U.S. trade policy shifts announced earlier this week. The announcement immediately triggered investor concern across multiple industries.
KOSPI falls nearly 1% as automakers and tech stocks tumble Within the first 15 minutes of trading, the Korea Composite Stock Price Index dropped 0.84% to 4,908.20 points, reflecting the tariff shock [1]. Hyundai Motor slid 3.55% and Kia fell 4.9%, while Samsung Electronics lost 1.45%; chipmaker SK hynix held steady and Hanwha Aerospace declined 1.58% [1]. Pharmaceutical firms also weakened, with Samsung Biologics down 0.5% and Celltrion down 2.79% [1].
Won weakens and utilities rise amid trade‑policy turbulence The Korean won depreciated to 1,449.4 per U.S. dollar, an 8.8‑won drop from the previous session, signaling currency market reaction to the tariff escalation [1]. Utility companies bucked the broader sell‑off, with KEPCO gaining 2.48% and Korea Gas up 0.5% [1]. These mixed movements highlight sector‑specific resilience despite overall market pressure.
Timeline
Dec 14, 2025 – The KOSPI opens sharply lower, falling 2.09 % to 4,080.01 as renewed worries about an AI‑related bubble hit large‑cap exporters; Samsung Electronics slides 3.4 % and SK hynix drops 3.85 %, while the won trades at 1,477.4 per dollar [2].
Dec 14, 2025 – U.S. equity markets tumble after Broadcom issues a weaker‑than‑expected margin outlook, reigniting doubts that AI spending will deliver returns; the S&P 500 falls more than 1 %, the Nasdaq slides 1.7 %, and the Dow dips 0.5 % [2].
Dec 14, 2025 – President Trump signals that former Fed Governor Kevin Warsh is his top candidate to replace Jerome Powell, whose term ends in May 2026, noting that Warsh “largely agrees” with Trump’s push for further rate cuts [2].
Jan 27, 2026 – President Trump announces on social media that the United States will raise tariffs on South Korean automobiles, lumber, pharmaceutical goods and “all other” reciprocal items from 15 % to 25 %, heightening trade tensions [1].
Jan 27, 2026 – The KOSPI slides 0.84 % to 4,908.20 in early trade, with automakers Hyundai (‑3.55 %) and Kia (‑4.9 %) leading the decline; Samsung Electronics falls 1.45 % while SK hynix holds steady [1].
Jan 27, 2026 – Korean pharma stocks weaken, as Samsung Biologics slips 0.5 % and Celltrion drops 2.79 %; utility firms buck the trend, with KEPCO rising 2.48 % and Korea Gas gaining 0.5 % [1].
Jan 27, 2026 – The Korean won depreciates to 1,449.4 per U.S. dollar, an 8.8‑won slide from the prior session, reflecting market reaction to the announced tariff increase [1].