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US President Donald Trump has announced he is raising tariffs on South Korean imports to 25% after accusing Seoul of “not living up” to a trade deal reached last year.<\/p>\n
In a post on social media, Trump said he would increase levies on South Korea from 15% across a range of products including automobiles, lumber, pharmaceuticals and “all other Reciprocal TARIFFS”.<\/p>\n
Trump said South Korean lawmakers have been slow to approve the deal while “we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to”.<\/p>\n
South Korea says it had not been given official notice of the decision to raise tariffs on some of its goods, and wanted urgent talks with Washington over the issue.<\/p>\n<\/div>\n
It added that South Korea’s Industry Minister Kim Jung-kwan, who is currently in Canada, will visit Washington as soon as possible to meet US Commerce Secretary Howard Lutnick.<\/p>\n
South Korea’s benchmark Kospi stock index fell on Tuesday morning but was trading about 1.8% higher later in the day as shares in major exporters recovered.<\/p>\n
Seoul and Washington reached a deal last October, which included a pledge from South Korea to invest $350bn (\u00a3256bn) in the US, some of which would go to shipbuilding.<\/p>\n
The following month, the two countries agreed that the US would reduce tariffs on some products once South Korea started the process to approve the deal.<\/p>\n
The agreement was submitted to South Korea’s National Assembly on 26 November and is currently being reviewed. It is likely to be passed in February, according to local media.<\/p>\n
Tariffs are paid by companies who import products. In this case, US firms will pay a 25% tax on goods they buy from South Korea.<\/p>\n
Trump has frequently used tariffs as leverage to enact foreign policy during his second term in the White House.<\/p>\n
On Saturday, he threatened Canada with a 100% tariff if it struck a trade deal with China.<\/p>\n
On Monday, Chinese officials said its “strategic partnership” agreement with Canada is not meant to undercut other countries.<\/p>\n
Canadian Prime Minister Mark Carney has said his country was not pursuing a free trade deal with China and has “never” considered it.<\/p>\n
He added that Canadian officials have made their position clear to their American counterparts.<\/p>\n
Before that, Trump said he would impose import taxes on eight countries – including the UK – who opposed US plans to seize Greenland, an autonomous territory in the Kingdom of Denmark which is a member of Nato.<\/p>\n
He later backed down from the tariff threat over Greenland citing progress towards a “future deal” over the island, but the episode strained US relations with Denmark and other Nato allies. <\/p>\n<\/div>\n