Trump to hike tariffs on South Korea

President Trump said Monday he will hike tariffs on South Korea from 15 to 25 percent, as the country is “not living up” to its trade deal with the U.S., according to a social media post. 

Why it matters: South Korea — home to manufacturers Samsung and LG — is the U.S.’s fifth-largest foreign supplier of HVAC and water heating products, with $1.1 billion worth of exports in 2024, according to HARDI data. 

Catch up quick: Trump first imposed a 25 percent tariff rate on South Korea in April 2025, as part of his ‘Liberation Day’ wave of announcements. 

• In October, the two countries hammered out a deal in which South Korea would invest $350 billion in the U.S. in exchange for a lower, 15 percent tariff. 

What’s happening: Monday’s announcement comes as South Korea’s legislature “hasn’t enacted” that investment pledge, “which is their prerogative,” Trump wrote. 

What they’re saying: South Korean President Lee Jae Myung’s office said in a statement that it hasn’t received a formal notification or detailed explanation regarding Trump’s social media post. 

• Yes, but: “We plan to cope with this issue calmly while messaging to the U.S. side that we are determined to implement the deal,” added spokeswoman Kang Yu-jung. 

What’s next: The president didn’t specify an effective date for the 25 percent tariff or issue an executive order. According to a Bloomberg analysis, 20 percent of Trump’s tariff threats since November 2024 have been imposed in full, while roughly 43 percent have been withdrawn. 

• South Korea’s presidential office called a meeting on Tuesday to review responses to the announcement, while Korean officials plan to visit Washington in the coming days.