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Tuesday, January 27, 2026
 
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Trump threatens to hike tariffs on S.Korean goods over inaction on trade deal

publish time

27/01/2026

publish time

27/01/2026

LJM104
Vehicles for export are parked at a port in Pyeongtaek, South Korea on Jan 27. (AP)

WASHINGTON, Jan 27, (AP): US President Donald Trump said Monday he is increasing tariffs on South Korean goods because the country’s legislature has yet to approve the trade framework announced last year. Trump said on social media that import taxes would be raised on autos, lumber and pharmaceutical drugs from South Korea with the rate on other goods going from 15% to 25%.

The US president previously imposed the tariffs by declaring an economic emergency and bypassing Congress, while South Korea needed legislative approval for the framework announced in July and affirmed during Trump's October visit to the country. "Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to,” Trump said.

"We, of course, expect our Trading Partners to do the same.” The threat was a reminder that the tariff drama unleashed last year by Trump is likely to be repeated again and again this year. The global economy and US voters might find the world's trade structure constantly being subject to disruption and new negotiations as Trump has already sought to levy tariffs in order to bend other nations to his will.

Trump has in the past tied his tariffs to commitments by South Korea to invest $350 billion in the US economy over several years, including efforts to revitalize American shipyards. But the Trump administration's relations with South Korea have at times been rocky with the raid last year by immigration officials at a Hyundai manufacturing site in Georgia in which 475 people were detained.

South Korea’s presidential office responded after a meeting of top South Korean officials that it will convey its commitment to implementing last year's deal to the US. The presidential office said that South Korea's Industry Minister Kim Jung-Kwan will travel to the US for talks with Secretary of Commerce Howard Lutnick, while Trade Minister Yeo Han-koo will travel separately to meet with Trade Representative Jamieson Greer.

Kim was on a visit to Canada. South Korean lawmakers have submitted five bills on implementing South Korea's proposed $350 billion investment package to the National Assembly. The bills are currently before the assembly's finance committee. Kim Hyun-jung, a spokesperson for South Korea's governing Democratic Party, said his party will coordinate with the government to organize swift debate and action on the bills.