Trump Hammers South Korea with 25% Tariff Ultimatum Over Parliamentary Delays

Donald Trump has hammered South Korea with an ultimatum, threatening to impose 25% tariffs on major exports unless Seoul’s legislature acts on a trade agreement negotiated last year. The president’s statement blamed Korea’s parliament for failing to enact what he called a historic bilateral deal.
The trade framework was negotiated directly between Trump and South Korean President Lee Jae Myung in October 2024, including provisions for reduced US tariffs on Korean vehicles and other products. However, the deal has become entangled in South Korean domestic political and legal debates.
South Korea’s presidential office maintains that the agreement was structured as a non-binding memorandum of understanding, though this position is being reconsidered under diplomatic pressure. Both ruling and opposition parties now commit to expediting five bills through parliament.
The economic stakes are considerable, particularly for the automotive sector which accounts for more than a quarter of South Korean exports to America. When Trump’s tariff threat became public, shares in Korean carmakers experienced significant volatility.
This latest tariff threat exemplifies Trump’s continued reliance on trade policy as a foreign policy instrument, following recent warnings to other nations. Economists express concern that the unpredictability creates business uncertainty and market volatility regardless of implementation.