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South Korea Reacts to U.S. Tariff Setback, Deepens Brazil Ties, and Tackles Cyber Breach

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  • President Lee Jae Myung (R) and Brazilian President Luiz Inacio Lula da Silva pose for a photo ahead of their summit talks at Cheong Wa Dae in Seoul on Feb. 23, 2026. (Yonhap)
    President Lee Jae Myung (R) and Brazilian President Luiz Inacio Lula da Silva pose for a photo ahead of their summit talks at Cheong Wa Dae in Seoul on Feb. 23, 2026. (Yonhap)
    Image: Yonhap
    President Lee Jae Myung (R) and Brazilian President Luiz Inacio Lula da Silva pose for a photo ahead of their summit talks at Cheong Wa Dae in Seoul on Feb. 23, 2026. (Yonhap) Source Full size
  • National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap)
    National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap)
    Image: Yonhap
    National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap) Source Full size
  • National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap)
    National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap)
    Image: Yonhap
    National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap) Source Full size

Supreme Court Blocks Trump’s Reciprocal Tariffs The U.S. Supreme Court on 21 Feb 2026 ruled that President Donald Trump’s “reciprocal” tariff authority under the 1977 International Emergency Economic Powers Act was unlawful, effectively nullifying the emergency duties imposed on South Korea and other partners [4][5]. The decision halted a 25 % tariff that had been reinstated in January 2026 after earlier reductions tied to a $350 billion investment pledge [4]. Korean officials hailed the ruling as a legal victory that restores the trade framework established in late 2025 [4][5].

Seoul Convenes Senior Officials for Coordinated Response On 22 Feb 2026, President Yoon’s administration gathered senior presidential staff, the finance, industry and trade ministers, and Democratic Party floor leader Han Byung‑do to devise a unified policy after the court ruling [3]. Policy chief Kim Yong‑beom and security adviser Wi Sung‑lac led the session, underscoring the high‑level priority of the tariff issue [3]. The agenda included reviewing U.S. tariff developments and the status of South Korean investment projects already underway in the United States [3].

Trump Issues New Global Tariff Proclamation After Court Loss Following the Supreme Court setback, Trump signed a proclamation on 21 Feb 2026 imposing a uniform 10 % worldwide tariff, signaling a shift from partner‑specific “reciprocal” duties to a blanket measure [4]. Earlier that week, he had announced a temporary 10 % tariff that took effect on Tuesday, then raised it to 15 % on 22 Feb 2026 via Truth Social [2][3]. The rapid escalation—from 10 % to 15 % within a day—has heightened uncertainty for South Korean exporters and prompted calls for “Plan B” strategies [2][3].

Seoul‑Brazil Partnership and Domestic Cyber Crackdown Unfold On 23 Feb 2026, President Lee Jae Myung and Brazil’s Luiz Inácio Lula da Silva signed a four‑year action plan elevating bilateral ties to a strategic partnership, covering politics, economy, space, defense, critical minerals and people‑to‑people exchanges [1]. The same day, senior U.S. diplomat Michael Needham arrived in Seoul to discuss deepening the Seoul‑Washington alliance alongside a $350 billion investment pledge [1]. Finance Minister Koo Yun‑cheol warned parliament that U.S. tariff uncertainty remains “very high” despite the court ruling [1], and Seoul police referred two teenage hackers to prosecution for a massive 2024 bike‑share data breach [1].

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Timeline

July 2025 – The United States and South Korea sign a trade agreement that caps tariffs on Korean automobiles at 10 percent and grants preferential rates on other goods, laying the groundwork for a later investment‑linked deal [2].

Oct 29 2025 – At the APEC summit in Gyeongju, President Lee Jae Myung and President Trump announce a strategic pact committing South Korea to a $200 billion cash investment and $150 billion in shipbuilding, while reducing auto tariffs to 15 percent retroactive to Nov 1 2025 [7].

Nov 26 2025 – South Korea’s National Assembly submits a special bill to enact the $350 billion U.S. investment package required by the trade pact, outlining a “strategic investment fund” to manage the commitments [30][23].

Dec 1 2025 – The U.S. Department of Commerce lowers the tariff on Korean automobiles from 25 percent to 15 percent, applying it retroactively to Nov 1 2025 and tying the reduction to Seoul’s $350 billion investment pledge [30].

Dec 3 2025 – A Federal Register notice formalizes the 15 percent duties on Korean autos, lumber and aircraft parts and confirms the $350 billion investment commitment, signaling the first concrete implementation of the 2025 trade deal [27][28][29].

Jan 26 2026 – President Donald Trump posts on Truth Social that “reciprocal” tariffs on South Korean autos, lumber, pharmaceuticals and other goods will rise from 15 percent to 25 percent because the Korean legislature has not approved the historic trade agreement [22][24][25].

Jan 27 2026 – Trump tells reporters the United States “will work something out” with Seoul after his tariff threat, while Industry Minister Kim Jung‑kwan is dispatched from Canada to meet Commerce Secretary Howard Lutnick in Washington [17][21][23].

Jan 28 2026 – Foreign Minister Cho Hyun addresses the National Assembly, stating that “the tariff threat is not linked to the Coupang probe,” and emphasizes that the dispute stems from the delayed investment bill [16].

Jan 29 2026 – In a Kwanhun Club panel, Cho says the tariff issue is “an implementation matter, not a renegotiation,” warns that a weakening won could postpone the $350 billion investment, and notes the administration’s new reliance on sudden social‑media announcements [15].

Jan 30 2026 – Two‑day talks between Industry Minister Kim Jung‑kwan and Commerce Secretary Howard Lutnick end without a tariff agreement; both sides agree to continue negotiations via video link [13]; Asian markets rebound, with Korean tech stocks (Samsung +4.9 %, SK Hynix +8.7 %) offsetting auto‑sector losses [4].

Feb 1 2026 – The ruling Democratic Party pledges to pass the special investment bill by late February or early March, and Industry Minister Kim Jung‑kwan meets Lutnick in Washington, clearing “unnecessary misunderstandings” [12].

Feb 2 2026 – Prime Minister Kim Min‑seok activates a direct U.S.–Korea hotline with Vice President JD Vance, aiming to clarify intentions after Trump’s tariff warning; Korean trade officials travel to Washington for talks [11].

Feb 3 2026 – Foreign Minister Cho Hyun arrives in Washington, meets Secretary of State Marco Rubio, and attends the inaugural Critical Minerals Ministerial, seeking to advance the $350 billion investment and secure uranium‑enrichment cooperation [10].

Feb 5 2026 – Trump reiterates the threat to raise tariffs to 25 percent, while Korean officials report that meetings with U.S. counterparts (Rubio, Trade Representative Greer, Commerce Secretary Lutnick) produce no immediate relief and the investment bill remains stalled [9].

Feb 6 2026 – Trump’s administration continues broader tariff pressure on other allies, noting similar “reciprocal” moves toward Canada and European nations as part of a pattern of using tariffs as a foreign‑policy lever [5].

Feb 6 2026 – Finance Minister Koo Yun‑cheol warns that “uncertainty over U.S. tariff measures remains very high” after the Supreme Court strikes down Trump’s global reciprocal‑tariff program, underscoring potential spill‑over effects on Korean exports [6].

Feb 21 2026 – The U.S. Supreme Court upholds a lower‑court ruling that the 1977 International Emergency Economic Powers Act does not authorize the president’s sweeping “reciprocal” tariffs, effectively blocking the 25 percent duties on South Korean goods [7].

Feb 23 2026 – South Korea and Brazil elevate their relationship to a strategic partnership with a four‑year action plan covering politics, economy, space and critical minerals; a senior U.S. diplomat arrives in Seoul to discuss the alliance and the rollout of the $350 billion investment pledge [6].

Future (late Feb – early Mar 2026) – The National Assembly is scheduled for an extraordinary session to vote on the special investment bill, a key step to unlock the $350 billion U.S. investment and restore the reduced‑tariff regime [12].

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