In brief
US President Donald Trump has announced a significant increase in tariffs on South Korean imports, raising them to 25%. This decision comes after he criticized South Korea for not upholding a trade deal from last year. Trump claims that South Korean lawmakers have delayed the necessary approvals, while South Korea argues they were not officially notified. The situation has already affected South Korea's stock market, but major exporters showed signs of recovery later in the day. South Korean officials are seeking urgent discussions to address the tariff increase.
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.
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.
Trump claimed 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.
South Korea asserts it was not officially informed about the decision to raise tariffs and is looking for urgent talks with Washington.
It added that South Korea's Industry Minister Kim Jung-kwan, currently in Canada, will visit Washington as soon as possible to meet US Commerce Secretary Howard Lutnick.
South Korea's benchmark Kospi stock index fell initially but rebounded later in the day as shares in major exporters recovered.
The two countries reached a deal last October, which included a pledge from South Korea to invest $350bn (£256bn) in the US. The agreement was set for approval by South Korea's National Assembly and is expected to be passed in February.
Tariffs are taxes that companies must pay to import products. In this case, US firms will pay a 25% tax on goods from South Korea.
Trump has frequently used tariffs as leverage in foreign policy throughout his presidency.
