President Donald Trump announced he would raise tariffs on South Korea by 10% over its failure to enact a previously agreed-upon trade deal.
In a post on Truth Social, Trump accused South Korea’s legislature of “not living up to its Deal with the United States,” referring to the trade deal signed on July 30 and reaffirmed on Oct. 29.
“Why hasn’t the Korean Legislature approved it?” Trump asked rhetorically.
“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%,” he added.
In a statement to CNN, the South Korean Blue House said there was “no official notice or explanation about the details” from the U.S. government so far. It added that its trade minister, currently visiting Canada, would travel to the United States to discuss the matter with Commerce Secretary Howard Lutnick.
The announcement triggered a panic within South Korea, which moved quickly to accommodate Trump. South Korean Deputy Prime Minister and Finance Minister Koo Yun-cheol said he would look to gather support for a major U.S. investment bill in response, Mint News reported.
“Will request help from the Parliament for swift approval of Bill,” Koo said. “Will hold talks with the U.S. on Korea’s parliamentary bill approval process for US-bound investment.
South Korea’s legislature hasn’t ratified the trade agreement due to a dispute over conflicting interpretations of its implementation. The government and the ruling Democratic Party of Korea argue that the deal isn’t a legally binding treaty per se, citing language in the Memorandum of Understanding stating, “This Memorandum is an administrative understanding between each of the United States and Korea and does not create legally binding rights and obligations.”
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The DPK further argues that ratifying the agreement into law would prevent any further negotiations or revisions to the agreement down the line. The party introduced the bill pushing U.S. investment as an alternative to ratifying the agreement.
The opposition People Power Party, however, argues that the National Assembly must ratify the trade deal due to the exorbitant costs involved.