Trump’s 25% Tariff Threat Prompts Seoul’s Coordinated Diplomatic Counter‑Move
Updated (3 articles)
Trump Announces 25% Tariff Increase on South Korean Goods President Donald Trump used a social‑media post to declare that U.S. reciprocal tariffs and auto duties on South Korea will rise from 15% to 25%, citing the South Korean legislature’s slow progress on the October trade pact and a pending special investment bill [1][2][3]. The announcement came without any formal notice to Seoul, leaving the South Korean government without an official U.S. document to reference [1][2][3]. Trump framed the move as a swift response to Seoul’s “incomplete” domestic process for the deal [1][2].
Seoul Plans Calm Diplomatic Response and Reaffirms Deal Commitment The Cheong Wa Dae issued a written briefing stating it will convey South Korea’s dedication to fully implement the bilateral agreement finalized in October [2][3]. An interagency meeting co‑chaired by National Security Adviser Wi Sung‑lac and policy chief Kim Yong‑beom gathered multiple ministries, with President Lee Jae Myung in attendance, to coordinate a measured reaction [2][3]. The administration emphasized a procedural approach, noting that any tariff change must await U.S. administrative steps before becoming binding [2][3].
Tariff Hike Dependent on U.S. Administrative Procedures South Korean officials clarified that the 25% increase will only take effect after a Federal Register notice and other required U.S. procedures are completed [2][3]. Until such notice is issued, the tariff raise is not legally enforceable, giving Seoul additional time to prepare diplomatic and economic responses [2][3]. The presidential office confirmed it has not received any official U.S. notification, underscoring a communication gap between the two governments [1][2][3].
South Korea Engages Direct Talks with U.S. Trade Officials Industry Minister Kim Jung‑kwan, currently in Canada, is scheduled to meet U.S. Commerce Secretary Howard Lutnick to discuss the tariff issue and the pending trade deal [3]. Trade Minister Yeo Han‑koo also plans a consultation with USTR head Jamieson Greer, focusing on implementation of the agreement and mitigation of tariff impacts [3]. Simultaneously, Seoul will consult Washington on the special investment bill that aims to support a US$350 billion investment pledge, with a parliamentary vote expected next month [1][2].
Sources
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1.
Yonhap: Trump hikes South Korea tariffs; Seoul responds amid political developments: Details Trump’s tariff announcement, Seoul’s intent to consult on the investment bill, lack of official U.S. notice, and domestic political events such as the repatriation of former PM Lee Hae‑chan and housing policy moves .
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2.
Yonhap: South Korea Reaffirms Commitment to Trade Deal Amid U.S. Tariff Threat: Highlights Seoul’s written pledge to honor the October pact, the interagency meeting led by Wi Sung‑lac and Kim Yong‑beom, and the dependence of the tariff increase on U.S. administrative steps .
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3.
Yonhap: South Korea to Reaffirm Trade Deal Commitment After U.S. Tariff Threat: Adds scheduled meetings of Industry Minister Kim Jung‑kwan with Commerce Secretary Lutnick and Trade Minister Yeo Han‑koo with USTR chief Greer, alongside the same reaffirmation and procedural emphasis .
Timeline
Oct 2025 – South Korea and the United States finalize a bilateral trade agreement that sets reduced tariffs and a $350 billion investment pledge, laying the groundwork for future economic cooperation [1][2][3].
Nov 2025 – The ruling Democratic Party submits a special investment bill to the National Assembly, designed to support the U.S. investment pledge and address President Trump’s criticism of legislative delays [2].
Jan 22‑26 2026 (earlier this week) – Former Prime Minister Lee Hae‑chan dies in Vietnam; his body is flown back to Incheon and transferred to a funeral home, prompting official mourning in Seoul [1].
Jan 27 2026 – President Donald Trump posts that the United States will raise reciprocal tariffs and auto duties on South Korean goods from 15 % to 25 %, accusing Seoul of not completing the domestic process required for the October deal [1][2][3].
Jan 27 2026 – National Security Adviser Wi Sung‑lac and policy chief Kim Yong‑beom co‑chair an interagency meeting at Cheong Wa Dae to coordinate a calm diplomatic response, noting the hike only takes effect after a Federal Register notice [2][3].
Jan 27 2026 – Presidential spokesperson Kang Yu‑jung issues a written briefing reaffirming South Korea’s commitment to implement the October trade agreement and confirming that no formal U.S. notice of the tariff increase has been received [2][3].
Jan 27 2026 – The Ministry of Economy and Finance announces it will consult Washington on the pending special investment bill, seeking to explain the legislation and gauge U.S. intentions after the tariff threat [1].
Jan 27 2026 – President Lee Jae Myung, in a cabinet meeting, pledges to curb capital inflows into the housing market by ending tax breaks for multiple‑home owners and increasing supply in the Seoul metropolitan area [1].
Jan 27 2026 – Industry Minister Kim Jung‑kwan, while in Canada, schedules a trip to the United States to meet Commerce Secretary Howard Lutnick and discuss trade concerns raised by the tariff announcement [3].
Jan 27 2026 – Trade Minister Yeo Han‑koo plans a near‑future consultation with USTR head Jamieson Greer to address implementation of the pending trade deal and mitigate tariff impacts [3].
Feb 2026 (next month) – The Democratic Party intends to review the special investment bill and schedule a parliamentary vote, seeking bipartisan support from the People Power Party to satisfy U.S. expectations [2].