Business & Economics

Trump Announces 25 % Tariff Snapback on South Korean Imports

On 26 Jan 2026, President Trump declared he will hike duties on South Korean autos, lumber and pharmaceuticals from 15 % to 25 %, citing Seoul’s failure to ratify a July 2025 $350 bn trade-investment accord.

Focusing Facts

  1. Trump’s Truth Social post (26 Jan 2026) states all listed South Korean goods will face a 25 % U.S. tariff, up from the 15 % rate set after the Oct 2025 deal.
  2. The unratified July 30 2025 memorandum requires South Korea to channel $350 billion into U.S. strategic sectors, with annual outlays capped at $20 billion.
  3. South Korean Trade Minister Kim Jung-kwan has been ordered to Washington for talks with U.S. Commerce Secretary Howard Lutnick within days.

Context

Tariff threats have long shadowed alliances: Andrew Jackson’s 1833 Force Bill pressured South Carolina much as Reagan’s 1987 100 % duties coerced Japan over semiconductors. Trump’s 2026 snapback reprises that playbook, weaponising access to the world’s largest market to hurry legislative action abroad. Structurally, the move underscores a post-2016 trend of the United States using unilateral tariffs—once a negotiating chip against rivals like China—to discipline treaty allies, blurring the line between security and commerce. Whether the levy really bites may matter less than the precedent: repeated tariff feints already leave equity traders and Asian governments discounting U.S. proclamations, diluting Washington’s credibility. On a century horizon this episode will likely register as part of an era when the liberal trade order frayed, great-power bargaining migrated from summit communiqués to social-media edicts, and mid-sized economies such as South Korea learned to hedge against U.S. policy whiplash by diversifying markets and deepening regional pacts.

Perspectives

South Korean mainstream media

e.g., Chosun.com, Yonhap News AgencyThey stress that the higher tariffs are not yet legally in force and say Seoul will calmly reaffirm its commitment while sending ministers to Washington for talks. Heavy reliance on government statements may downplay the likelihood of a harsher U.S. stance, soothing domestic audiences and markets.

Western liberal media

e.g., The Independent, Democratic UndergroundCoverage frames the hike as another abrupt Trump reversal that threatens an ally and underscores his erratic, hard-ball approach to trade. Emphasising Trump’s recklessness fits a partisan critique and gives limited attention to Seoul’s own delay in ratifying the pact.

Financial and crypto-market outlets

e.g., BeInCrypto, DevdiscourseReports note that investors largely ignored the threat, arguing markets see Trump’s tariff tweets as brinkmanship that rarely materialises. By focusing on market resilience and coining terms like “TACO,” they may understate real policy risks to keep a bullish narrative for traders.

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