Another day, another threat from U.S. President Donald Trump. This time, South Korea is in the crosshairs. Specifically, the president announced he was raising tariffs on South Korean goods from 15% to 25%, a decision that has sparked strong reactions.
Donald Trump raised tariffs for South Korea from 15% to 25%
Donald Trump backs down on his tariff threats 73% of the time, according to Bloomberg
19% of South Korea’s exports go to the United States
The reason? The Korean Parliament has not yet approved the trade agreement reached in July with the United States, which would set tariffs at 15%.
“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” Trump wrote.
Of course, Hyundai and Kia are greatly affected by this new measure. General Motors (GM), which imports the Chevrolet Trax and two SUVs bearing the Buick logo from South Korea, is also impacted.
This decision puts Hyundai and Kia at a disadvantage compared to their Japanese rivals, whose tariffs stand at 15%. In fact, for South Korea as a whole, 19% of its exports go to the United States.
South Korea’s response
The South Korean government was quick to respond, announcing that it would send its trade and industry ministers to Washington to discuss the implementation of last July’s agreement.
Officials will naturally want to resolve the matter quickly to prevent the 25% tariffs from lasting. Parliament said it would deliberate on this issue next month, in February.
Buick Shifts Envision’s Production From China to the United States to Offset Tariffs
This type of political sparring is common, but under normal circumstances, discussions take place behind closed doors, not on social media through threats.
Donald Trump has also threatened tariffs against the European Union over its opposition to his ambitions for Greenland. This week, he threatened Canada with 100% tariffs over an agreement between the country and China on, among other things, the arrival of 49,000 electric vehicles in Canada.
Interestingly, Bloomberg, which is reporting this, has just published the results of an analysis explaining that Donald Trump backs down on his own tariff threats 73% of the time.
We’ll see what happens in this case.
