Donald Trump Hikes South Korea Tariffs
Analysis based on 9 articles · First reported Jan 26, 2026 · Last updated Jan 27, 2026
The increased tariffs by Donald Trump on South Korean imports are expected to negatively impact South Korea's economy, leading to a fall in the KOSPI index and a weakening of the South Korea — South Korean won. Companies like Hyundai Motor Company and Oracle Corporation, heavily reliant on exports to the United States, will face significant financial repercussions, potentially increasing volatility in global trade markets.
President Donald Trump announced an increase in tariffs on South Korean imports, including autos, lumber, and pharmaceuticals, from 15% to 25%. This decision stems from his accusation that South Korea's legislature has not enacted a previously agreed-upon trade deal with the United States. The deal, finalized in October 2025 between Donald Trump and Lee Jae Myung, included a commitment from South Korea to invest $350 billion in US strategic sectors. However, South Korea's Finance Minister Koo Yun-cheol recently indicated that the investment might be delayed due to the weak South Korea — South Korean won. The tariff hike has already caused the KOSPI index to fall and the South Korea — South Korean won to weaken, with major South Korean automakers like Hyundai Motor Company and Oracle Corporation experiencing significant stock price drops. The United States Supreme Court is also reviewing the legality of Donald Trump's use of the International Emergency Economic Powers Act to justify country-specific tariffs, adding to market uncertainty.
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