US President Trump announced on the 26th that tariffs on South Korean exports to the US—such as automobiles, timber, pharmaceuticals, and other goods—will be raised from 15% to 25%, citing the fact that the South Korean National Assembly has yet to ratify the US-South Korea trade agreement.
He stated on social media that he and South Korean President Lee Jae-myung reached a trade agreement framework on July 30 last year, and reaffirmed the terms of the trade agreement during his visit to South Korea on October 29. The US side promptly lowered tariffs in accordance with the agreement and expected its trade partner to do the same, but the South Korean parliament has yet to approve the trade deal.
After the US and South Korea reached the trade agreement framework, there were voices of skepticism and opposition within South Korea, and the two sides were once at an impasse regarding the details of implementation.
According to the US interpretation of the agreement framework, South Korean exports to the US will be subject to a 15% tariff rate, while US products will not be subject to tariffs in South Korea. South Korea will invest US$350 billion (approximately RM13,877 billion) in the US, and will also purchase US$100 billion worth of liquefied natural gas or other energy products from the US. South Korea will fully open its trade to the US and accept US automobiles and agricultural products.
According to official US data, in the first ten months of 2025 the US imported US$104.657 billion of goods from South Korea and exported US$57.467 billion worth of products to South Korea.