Trump hikesSouth Korea tariffs on cars, pharma to 25%
US President Donald Trump announced a 10-percentage-point increase in tariffs on South Korean goods, raising rates on cars, pharmaceuticals, and other products from 15% to 25%. The move follows Trump's claim that South Korea's legislature failed to approve a trade agreement reached with him in July and October 2025. Trump cited the lack of legislative action as the reason for the tariff hike, stating on Truth Social that the agreement was historic and reaffirmed during his October visit to South Korea. South Korea's presidential office countered that it has received no official notification or details from the US government regarding the tariff changes, according to Yonhap news agency. The tariff increase reverses a previous agreement where rates were lowered from 25% to 15% in July and October 2025. South Korea exports significant volumes of cars (Kia, Hyundai), semiconductors, and electronics to the US, making the tariff hike impactful for consumers and industries. The action follows Trump's previous threats to impose 25% tariffs on South Korean goods before the July-October 2025 agreement. South Korea had also committed to investing $350 billion in the US over several years.