President Donald Trump said Monday that he was hiking tariffs on imports from South Korea to 25% from 15%, complaining that the U.S. ally\u2019s legislature wasn\u2019t \u201cliving up\u201d to a trade deal that was reached last year.<\/p>\n\n\n\n
\u201cBecause the Korean Legislature hasn\u2019t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,\u201d Trump wrote on social media.<\/p>\n\n\n\n
Trump is already contending with blowback from voters over affordability and the cost of living. His tariffs have contributed to stubborn price inflation, and recent research says consumers have shouldered nearly all of the costs from the duties.<\/p>\n\n\n\n
South Korea is an important trading partner for the United States, ranking among the top 10 sources of imports. Companies and consumers import nearly $150 billion worth of goods from South Korea to the U.S. every year.<\/p>\n\n\n\n
A spokesperson for South Korean President Lee Jae Myung said Tuesday that there had been \u201cno official notification from the U.S. government nor any explanation of the details as of yet.\u201d<\/p>\n\n\n\n
The spokesperson said a \u201ccountermeasures meeting\u201d was scheduled to be convened on Tuesday. Trade Minister Kim Jung-kwan, who is currently in Canada, will also visit the U.S. \u201cas soon as possible\u201d to discuss the issue with Commerce Secretary Howard Lutnick, the spokesperson said.<\/p>\n\n\n\n
Shares of South Korean automakers such as Hyundai and Kia were down as much as 6% in early trading Tuesday before regaining some of their losses.<\/p>\n\n\n\n
In July, Trump reached what he called a trade deal with South Korea’s president. However, the two sides remained deadlocked for months over an investment pledge the U.S. pushed for.<\/p>\n\n\n\n
Then, in October, during Trump’s Asia trip, he and South Korean President Lee Jae Myung finalized that deal, which included a promise that South Korea would invest $350 billion in the U.S.<\/p>\n\n\n\n
Weeks later, in November, the White House and the South Korean government released a “fact sheet” that was set to put the deal in motion.<\/p>\n\n\n\n
The deal featured lower tariffs for both sides, with imports coming into the U.S. capped at a 15% rate, down from the 25% duty announced on “Liberation Day” in April, which sent markets into a tailspin.<\/p>\n\n\n\n
Trump’s latest tariff announcement follows at least three other threats that the administration never followed through on, including the threat of a 10% duty on Canada after Ontario ran an anti-tariff World Series ad, tariffs on European countries over Greenland and tariffs of 100% on Canada, which was threatened Saturday.<\/p>\n\n\n\n
The Supreme Court continues to consider the legality of Trump\u2019s sweeping trade agenda. Administration officials have maintained in court that they are necessary. However, Trump has used them to lash out at world leaders he dislikes.<\/p>\n\n\n\n
Last week, Trump said he imposed higher tariffs on Switzerland because its president “rubbed me the wrong way.\u201d<\/p>\n\n\n\n
The court could rule in the coming weeks.<\/p>\n\n\n\n