Trump Threatens 25 Percent Tariffs on South Korean Exports Unless New Trade Deal Reached by August 1
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Trump Threatens 25 Percent Tariffs on South Korean Exports Unless New Trade Deal Reached by August 1
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President Trump has announced that unless a new bilateral trade agreement is secured, **South Korean exports to the United States will face a 25 percent tariff rate starting August 1**. This extension follows an earlier delay, and according to both President Trump and Treasury Secretary Scott Bessent, there will be no further postponements. The tariffs apply broadly but carry particular weight for industries like automotive, steel, and electronics, key pillars of South Korean exports. In addition, transshipments—goods routed through a third country—could face even higher tariffs depending on their country of origin.
Trump’s use of tariffs, described as “reciprocal,” aims to incentivize reshoring U.S. manufacturing and generate revenue to support domestic initiatives. His administration argues that the current U.S.–South Korea trade arrangement is unbalanced, despite South Korea’s effective tariff rate on U.S. goods being around 0.79 percent, a figure well below the new 25 percent U.S. levy. The Korea Economic Institute of America notes that South Korea, under the U.S.–Korea Free Trade Agreement, maintains some of the lowest tariff rates among America’s major trading partners.
The White House has issued formal letters to South Korea and other targeted countries, notably Japan, Malaysia, and Thailand, specifying new tariff rates between 25 and 40 percent. These letters, posted to President Trump’s Truth Social account, are part of what the administration calls a “tailor-made” trade strategy. Only the United Kingdom and Vietnam have recently reached agreements with the U.S. to avoid the new tariffs.
Uncertainty also looms over possible sector-specific tariffs. Trump has publicly considered imposing additional tariffs on **semiconductors**, South Korea’s largest export by value. If enacted, this would add further pressure to South Korea’s economy, particularly as steep tariffs on steel (50 percent) and automobiles (25 percent) are already in effect. The South Korean government, for its part, is seeking to negotiate an end or reduction to these tariffs, but the Trump administration has signaled tough demands, including increased purchases of American goods and investment in U.S. manufacturing.
As the August 1 deadline approaches, the stakes are high for South Korean industries and for global supply chains. With negotiations ongoing and no further extensions in sight, listeners should stay tuned for any last-minute breakthroughs or additional policy announcements from Washington or Seoul.
Thanks for tuning in to South Korea Tariff News and Tracker. Don’t forget to subscribe for the latest updates. This has been a Quiet Please production; for more, check out quietplease.ai.
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