Trump Hikes Tariffs on South Korea
Analysis based on 9 articles · First reported Jan 26, 2026 · Last updated Jan 27, 2026
The increased tariffs by Donald Trump on South Korean goods are expected to negatively impact South Korea's export-driven economy, particularly in the automotive, lumber, and pharmaceutical sectors, as evidenced by the decline in KOSPI and Hyundai Motor Company's stock. The uncertainty surrounding the implementation and legality of these tariffs, pending a United States — Supreme Court of the United States ruling, adds volatility to the market.
Donald Trump announced an increase in tariffs on a wide range of South Korean goods, raising them from 15% to 25%. This decision was made via a Truth Social post, citing the Korean Legislature's failure to enact a 'Historic Trade Agreement'. The affected sectors include automobiles, auto parts, lumber, pharmaceuticals, semiconductors, and electronics. This move reverses a previous agreement from July that set tariffs at 15%. South Korea, a major exporter to the United States, is now facing potential economic repercussions, with its benchmark index KOSPI and major companies like Hyundai Motor Company experiencing declines. South Korean officials are rushing to meet with US counterparts, including Jamieson Greer and Howard Lutnick, to discuss the situation. The legality of Donald Trump's unilateral tariff powers is currently under review by the United States — Supreme Court of the United States, which could impact the long-term enforceability of these measures.
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