Post by : Meena Ariff

US President Donald Trump has announced a significant increase in tariffs on imports from South Korea, raising them to 25% from the previous 15%. The move targets a broad range of products including automobiles, lumber, pharmaceuticals, and other goods under reciprocal tariff agreements.

Trump criticized South Korea for "not living up" to the trade deal reached between the two countries last year. According to Trump, while the US acted quickly to reduce tariffs in line with the agreed terms, South Korean lawmakers have been slow to approve the deal.

South Korean officials responded by stating that they had not received official notice regarding the tariff hike and have called for urgent discussions with the US to resolve the matter. Kim Jung-kwan, South Korea’s Industry Minister, currently in Canada, plans to visit Washington soon to meet with US Commerce Secretary Howard Lutnick.

Following the announcement, South Korea’s Kospi stock index initially dropped but recovered later, gaining about 1.8%, supported by rebounds in major exporter shares.

The original trade agreement, signed in October last year, included South Korea’s commitment to invest $350 billion in the US, with some funds earmarked for the shipbuilding industry. The US agreed to reduce tariffs on certain products once South Korea began the legislative approval process. The deal was submitted to South Korea’s National Assembly in late November and is expected to be passed by February.

Tariffs are taxes imposed on imported goods, and with this increase, US companies importing products from South Korea will now face a 25% tax, making Korean imports more expensive.

President Trump has often used tariffs as a tool to advance his foreign policy goals during his second term. Recently, he also threatened to impose a 100% tariff on Canada if it pursued a trade deal with China, a move that sparked diplomatic clarifications from both Canada and China.

Additionally, Trump previously warned of tariffs on several countries, including the UK, related to his controversial plans involving Greenland, an autonomous Danish territory and NATO member. Though he later retracted the tariff threat over Greenland, the episode caused tensions with Denmark and other NATO allies.

#Global News #Economy #World News #Trade