Washington has unveiled a significant hike in import duties on goods from South Korea, lifting tariffs from 15% to 25% on a range of products such as cars, timber, and pharmaceuticals. The decision, announced by President Donald Trump, was justified by what the US administration described as Seoul’s failure to finalise a bilateral trade accord, injecting renewed tension into economic relations between the two countries.

South Korea reacted without delay. On 27 January, the government held an emergency meeting involving multiple ministries to assess possible responses. According to the presidential office, Seoul intends to reiterate its commitment to the agreement while handling the dispute with restraint in order to prevent further deterioration.

At the heart of the disagreement is a framework arrangement concluded on 30 July 2025. That deal envisaged a reduction in US tariffs on major South Korean exports from 25% to 15%, in exchange for large-scale South Korean commitments, including $350 billion in investments in strategically important US industries, $100 billion in purchases of American energy, and broader access for US vehicles and agricultural products to the Korean market. From the beginning, domestic critics characterised the agreement as unbalanced, claiming that South Korea was taking on disproportionate obligations.

Progress on implementation has stalled due to internal political disagreements. The governing party maintains that the arrangement is a non-binding memorandum that does not require legislative approval, whereas opposition parties argue that commitments of this magnitude necessitate ratification by the National Assembly. This political impasse has delayed execution of the deal and has been cited by Washington as justification for the latest tariff measures.