US President Donald Trump announced a sharp increase in import duties on goods from South Korea from 15% to 25%, accusing Seoul of failing to comply with trade agreements. This decision has already caused a collapse in the shares of leading Korean automakers and increased tensions in trans-Pacific trade. This is reported by Autoblog, writes UNN.
Details
On his Truth Social network, Trump stated that the South Korean legislature had not ratified the "Grand Agreement" reached in July 2025. Due to Seoul's procrastination, the US president decided to immediately increase tariffs not only on cars, but also on lumber and pharmaceutical products.
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Amidst this news, Hyundai Motor shares fell by almost 5%, and Kia by 6%. Analysts warn that the return of the 25% duty could cost the Hyundai-Kia group almost 5 trillion won (about $3.5 billion) in additional annual expenses. At the same time, Japanese manufacturers, such as Toyota, whose tariffs remain at 15%, gain a significant competitive advantage in the US market.
Global context and escalation with Canada
The decision regarding South Korea became part of the Trump administration's broader tariff strategy in 2026. Simultaneously with the Korean case, the White House threatened Canada with the introduction of 100% duties. The reason was Prime Minister Mark Carney's agreements with Beijing to reduce tariffs on Chinese electric vehicles, which Trump called turning Canada into a "transit point" for goods from China.
The South Korean government has already initiated urgent consultations with Washington, trying to restore the preferential 15% rate. Industry Minister Kim Joon Kwan is preparing a visit to the US to meet with Commerce Secretary Howard Lutnick to prevent economic losses, as automotive exports are critically important for Seoul.
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