Trump bumps up tariffs on South Korean goods to 25%
Donald Trump just announced he's raising tariffs on South Korean cars, lumber, and pharmaceuticals from 15% to 25%.
He says it's because South Korea's legislature hasn't approved their trade agreement yet.
As Trump put it, "Because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%."
Quick background:
This all started after a deal last year where South Korea pledged to invest $350 billion—including $150 billion in the US shipbuilding sector and $200 billion for strategic industries under a memorandum of understanding—in exchange for the US lowering tariffs from 25% to 15%.
Since the implementing legislation hasn't been passed by South Korea's lawmakers, the tariff reduction is not in effect, and the administration has announced it will restore tariffs to 25% pending administrative procedures.
How South Korea is reacting:
South Korea's presidential spokeswoman Kang Yu-jung says they're still committed to the deal and will share their plans with Washington soon.
The Blue House did not have an immediate comment, but officials are planning to send a delegation over to discuss what happens next.