Trump Escalates Tariffs to 25% as South Korea Delays Trade Framework Ratification
Updated (3 articles)
Trump Raises Tariffs to 25% Citing Unratified Deal President Donald Trump announced on social media that U.S. duties on South Korean autos, lumber, pharmaceutical drugs and other products will rise from 15% to 25% [1][2][3]. He invoked an economic emergency to impose the increase without congressional approval, framing it as retaliation for the Korean legislature’s failure to ratify the trade framework finalized in October [1][2][3]. The move reactivates the tariff leverage that was previously tied to Seoul’s pledge of a $350 billion investment in the United States [1][2][3].
Seoul Dispatches Industry and Trade Ministers to Washington Industry Minister Kim Jung‑kwan, who is in Canada negotiating a submarine contract, and Trade Minister Yeo Han‑koo will travel to Washington to meet Commerce Secretary Howard Lutnick and USTR Jamieson Greer [2][3]. Both officials are tasked with demonstrating Seoul’s commitment to the pending agreement and seeking relief from the newly announced tariffs [2][3]. South Korea’s finance ministry will coordinate the talks around a special bill that would codify the $350 billion investment promise [2][3].
National Assembly Reviews Five Bills for $350 Billion Investment Lawmakers have filed five separate bills covering the $350 billion investment package, and the finance committee is already reviewing them [1][3]. Officials expect the measures to be merged into a single proposal that must clear both finance and judiciary committees before a floor vote [1][3]. The investment pledge remains the central condition for restoring the reduced 15% U.S. tariff rate on Korean goods [1][3].
Tariff Move Reflects Wider U.S. Pressure on Trade Partners The South Korean tariff threat follows recent U.S. warnings to eight European nations over Greenland and a proposed 100% tax on Canadian goods, illustrating a broader strategy of using tariffs to extract concessions [1][3]. Section 232 investigations and a pending Supreme Court case on the president’s authority under the 1977 International Emergency Economic Powers Act could further shape the administration’s trade agenda [1][3]. Analysts note that the South Korea dispute is part of a pattern of aggressive tariff pressure on multiple allies [1][3].
Sources (3 articles)
-
[1]
AP: Trump threatens to hike South Korean tariffs to 25%: Details the 25% tariff increase, links it to the unratified trade framework, outlines the $350 billion investment pledge, and places the move within a broader pattern of U.S. tariff pressure .
-
[2]
Yonhap: South Korea Sends Industry and Trade Ministers to Washington After Trump’s Tariff Hike: Focuses on the dispatch of Kim Jung‑kwan and Yeo Han‑koo, their meeting schedules, and the finance ministry’s coordination on the investment bill .
-
[3]
King5: Trump Raises South Korean Tariffs Over Unapproved Trade Framework: Highlights the tariff rise, ministerial talks, the five investment bills, and connects the action to recent aggressive tariff threats toward other allies .
Timeline
Jul 2025 – The United States and South Korea announce a comprehensive trade framework that includes a pledge for Seoul to invest $350 billion in U.S. projects such as shipyard revitalization, laying the groundwork for future tariff reductions. [1][2]
Oct 2025 – President Donald Trump visits Seoul and publicly reaffirms the trade framework and the $350 billion investment commitment, signaling U.S. willingness to lower tariffs if the deal is ratified. [1][2]
2025 – A federal immigration raid at Hyundai’s Georgia plant detains 475 workers, inflaming labor‑related tensions that later color the tariff dispute. [1][2]
Dec 2025 – Trump threatens eight European nations with tariffs unless the United States gains control of Greenland, then retracts the ultimatum after Davos meetings, illustrating his broader “tariff‑as‑leverage” strategy. [1][2]
Dec 2025 – Trump warns Canada of a 100 % tax on Canadian goods if Ottawa pursues a trade deal with China, further demonstrating his aggressive use of tariffs to extract concessions. [1][2]
2025‑2026 – Trump repeatedly invokes an economic emergency declaration to impose tariffs without congressional approval, a legal approach now being tested in a pending Supreme Court case on the 1977 International Emergency Economic Powers Act. [1][2]
2025‑2026 – Section 232 investigations under the 1962 Trade Expansion Act continue, keeping U.S. trade policy in a state of flux while the Korean dispute unfolds. [1][2]
Early Jan 2026 – The U.S. Trade Representative’s office sends a formal letter to Seoul demanding rapid enactment of the trade agreement, setting the immediate diplomatic context for the upcoming tariff announcement. [3]
Jan 2026 – South Korea’s National Assembly still has not ratified the trade framework; lawmakers file five separate bills covering the $350 billion investment plan, which the finance committee begins reviewing with an eye toward merging them into a single proposal. [1][2][3]
Mid‑Jan 2026 – Industry Minister Kim Jung‑kwan, while on a submarine‑bid mission in Canada, prepares to travel to Washington to meet Secretary of Commerce Howard Lutnick once his Canadian duties conclude. [3]
Jan 26, 2026 – President Trump posts on social media that U.S. duties on South Korean autos, lumber and pharmaceuticals rise from 15 % to 25 %, and that the tariff rate on other Korean goods also climbs to 25 %, citing Seoul’s failure to ratify the trade framework. [1][2][3]
Jan 26, 2026 – The South Korean presidential office announces that Kim Jung‑kwan will meet Howard Lutnick and Trade Minister Yeo Han‑koo will meet U.S. Trade Representative Jamieson Greer in Washington to convey Seoul’s commitment and try to defuse the tariff increase. [1][2][3]
Jan 27, 2026 – South Korea’s finance ministry says it will closely coordinate with Washington on the special bill supporting the $350 billion investment pledge and will seek parliamentary cooperation later that day. [3]
Late Jan 2026 (planned) – The five investment bills are expected to be consolidated into a single proposal, then cleared by the finance and judiciary committees before reaching a floor vote in the National Assembly, a step deemed essential to avoid the 25 % tariff regime. [1][2]
Future (planned) – The ministerial talks in Washington aim to secure Seoul’s swift legislative action on the trade framework, which would restore the previously reduced U.S. tariff rate of 15 % on Korean products. [1][2][3]