Trump Slams South Korea with Brutal 25% Tariff Threat Over Legislative Failures

Donald Trump has slammed South Korea with a brutal tariff threat, promising to impose 25% duties on major exports unless Seoul’s legislature acts on a trade agreement from last year. The president’s statement specifically blamed Korea’s parliament for failing to ratify the bilateral deal.
The trade framework was negotiated directly between Trump and South Korean President Lee Jae Myung in October 2024, including provisions for reduced American tariffs on Korean vehicles and other products. However, the deal has languished in legal uncertainty within South Korea’s political system.
South Korea’s presidential office maintains that the agreement was structured as a memorandum of understanding not requiring legislative approval, though this position is being reconsidered under diplomatic pressure. Both ruling and opposition parties now commit to expediting relevant bills through parliament.
The economic stakes are considerable, particularly for the automotive sector which exports nearly half its production to the United States and represents more than a quarter of total Korean exports to America. Stock market reaction included sharp volatility for Korean carmaker shares following the announcement.
This latest tariff threat exemplifies Trump’s continued reliance on trade policy as a foreign policy instrument, following recent warnings to other nations. Economists warn that the unpredictability creates business uncertainty and market volatility regardless of whether specific threats are ultimately carried out.