Global Times: President Donald Trump said on Monday (local time) that tariffs on some South Korean imports would rise from 15 percent to 25 percent, citing a “delay” in South Korea’s legislature approving a trade deal reached with the US last summer.
A Chinese expert views this move as a stark example of US policy prioritizing domestic political demands over international trade rules, heightening uncertainty and effectively “stabbing allies in the back,” as such an action came after Trump and US Treasury secretary Scott Bessent claimed the US would impose 100 percent tariffs on Canadian imports “if Canada finalizes a free-trade agreement with China.
“On Monday, Trump posted on Truth Social that “Because the Korean Legislature hasn’t 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 percent to 25 percent.
“According to Yonhap News Agency (Yonhap), the agreement that Trump referred to was a bill submitted to South Korean National Assembly in November to implement the bilateral trade and investment deal, which has yet to pass through the legislature. The agreement included South Korea’s commitment to investing $350 billion in the US and other pledges in return for Washington’s lowering of reciprocal tariffs and auto levies on South Korea to 15 percent.
Cheong Wa Dae, South Korea’s presidential office, said it has not received an official notice or explanation from the US over Trump’s tariff hike announcement, adding that it will soon hold an emergency interagency meeting, headed by presidential chief of staff for policy Kim Yong-beom, to discuss the government’s response, according to Yonhap.
Meanwhile, South Korea Industry Minister Kim Jung-kwan, who has been on a visit to Canada, was set to head for Washington, where he will discuss the matter with his US counterparts, his office said, adding that a meeting with US Commerce Secretary Howard Lutnick was being arranged, Yonhap reported.
Shin Won-kyu, a chief analyst at the Korea Economic Research Institute, said “Trump’s move could be stemming from heightened anxiety with an array of issues bursting out, including criticism over his immigration policy and ambitions over Greenland, as well as escalating tensions with the EU and Canada,” according to Yonhap.”Such erratic tariff actions undermine trust-based US-South Korea economic ties and send a highly risky signal to global markets.
The US’ move on South Korea and Canada shows it is effectively stabbing allies in the back,” Li Yong, an executive council member of the China Society for WTO Studies, told the Global Times.
“Unilateral measures force inefficient supply-chain restructurings worldwide, imposing heavy uncertainty premiums on businesses. Over time, this erodes US’ international credibility,” said Li.
The US’ latest move echoed earlier threats against Canada, where tariffs were weaponized to interfere in sovereign decisions, shifting “America First” from domestic revitalization to hegemonic interference that subverts ally sovereignty and alliance values, Li noted.”These policies introduce profound uncertainty, damaging not only bilateral relations but also trilateral dynamics and broader global stability,” Li pointed out.
In market reaction, South Korea’s benchmark KOSPI index fell 0.7 percent in early trading on Tuesday before recovering, with shares of major automakers like Hyundai experiencing initial volatility. The South Korean won also weakened slightly against the US dollar amid the uncertainty.
