Trump Hikes South Korean Tariffs to 25% Amid Trade Friction 📈

President Donald Trump has announced a sharp increase in tariffs on South Korean imports, raising rates from 15% to 25%. The move follows frustrations over the South Korean Legislature’s delay in enacting a "Historic Trade Agreement" reached last year. • Overall Impact & Markets The South Korean KOSPI index fell 0.7%, while the won weakened 0.5% against the dollar following the news. This escalation adds to global trade volatility as Trump continues to use tariffs as leverage across his second term. • Sector Breakdowns Autos: Expected to be hit hardest; auto exports to the U.S. were US$ 30.2 Bn in 2025 (25% of total U.S.-bound shipments). Lumber & Pharma: Also specifically targeted for the 25% rate hike. Corporate Fallout: Shares in Hyundai and Kia dropped 3.5% and 4.8% respectively. • Key Figures (2025 Data) Total South Korean Exports: US$ 709.4 Bn (+3.8% YoY). U.S. Market Share: US$ 122.9 Bn (Second largest market after China), though shipments fell 3.8% YoY. • Strategic Context Seoul had previously agreed to a US$ 350 Bn investment package in U.S. strategic sectors. However, implementation has stalled due to currency instability and legislative delays, triggering Trump's "impatience." _Note: This summary is based on provisional market reports and social media statements from the U.S. Presidency._