South Korean Tariffs to Rise Again? Trump Drops 25% Signal, Causing Market Tension
US President Donald Trump announced on Monday (January 26, 2026) that import tariffs on South Korean goods would be raised to 25% from 15%. He announced the plan via a social media post, with a broad list of sectors—from cars and lumber to pharmaceuticals—plus “other reciprocal tariffs.”
However, the exact date of these tariffs remains unclear. Several reports indicate that South Korea has not received official notification, while implementing tariffs typically requires administrative/formal steps (such as an executive order or official government document). Therefore, the market is reading this announcement as a serious threat—but the details of the effective date are still “up in the air.”
The background: In July of last year, Trump announced a trade agreement framework with South Korea that kept tariffs from rising from 10% to 25%. Under that framework, tariffs were lowered to 15% and included provisions for preferential tariff treatment for several goods, including imported cars.
Trump is now accusing South Korea of not "implementing" the agreement, primarily due to the slow/delayed process in their legislative body. For the US, this issue is also connected to the "reciprocal tariffs" policy, which Trump has frequently used as a negotiating tool, and there is also the legal uncertainty surrounding tariff authority, which is currently a concern in the US.
The impact was immediately felt on sentiment: this news sparked concerns for major South Korean exporters (especially the automotive sector), and has the potential to increase import costs and increase supply chain costs if the tariffs are actually implemented. Reports also indicate that the Korean market initially responded negatively, and the South Korean government plans to send relevant officials to discuss with the US side to defuse the situation. (az)
Source: Newsmaker.id
