PresidentDonald Trumpsaid Monday it was raising tariffs on South Korean goods because the country’s National Assembly has yet to approve thecommercial frameworkannounced last year.
Trump said on social media that import taxes would be increased on automobiles, lumber and medicine from South Korea, with the rate on other products rising from 15% to 25%. The US president previously imposed the tariffs by declaring an economic emergency and bypassing Congress, while South Korea needed legislative approval for the framework announced in July and confirmed during Trump’s visit to the country in October.
“Our trade agreements are very important to America. In each of these agreements, we have acted quickly to reduce our TARIFFS in accordance with the agreed transaction,” Trump said. “Of course, we expect our business partners to do the same. »
The threat was a reminder that thetariff dramaunleashed last year by Trump will likely be repeated again and again this year. The global economy and American voters may find that the global trade structure is constantly subject to disruption and renegotiation, as Trump has previously sought to impose tariffs in order to bend other countries to his will.
In the past, Trump has tied his tariffs to South Korea’s commitments to invest $350 billion in the U.S. economy over several years, including revitalizing U.S. shipyards. But the Trump administration’s relationship with South Korea has been rocky at times, with immigration officials raiding aHyundai manufacturing site in Georgiathis resulted in the arrest of 475 people.
South Korea’s presidential office responded in a statement that the United States had not officially informed it of the proposed tariff hike.
South Korean Industry Minister Kim Jung-Kwan, who is currently visiting Canada, will soon travel to the United States for talks with Commerce Secretary Howard Lutnick.
The statement said Kim Yong-beom, the presidential chief of staff for policy, will convene a meeting to discuss Trump’s announcement.
Monday’s announcement of new tariffs is part of a pattern in which Trump plans to continue rolling out tariffs, perhaps to the detriment of relations with other countries.
Last week, the president threatened to impose tariffs on eight European countries unless the United States took control of Greenland.only to go backon his ultimatum after meetings at the World Economic Forum in Davos, Switzerland. Trump said Saturday he woulda 100% tax on goods from Canadaif he followed through on his plans to boost trade with China.
Trump has boasted about his trade frameworks attracting new investment to the United States, but many of his high-profile deals have yet to be finalized. The European Parliament has yet to approve a trade deal pushed by Trump that would impose a 15% tax on the majority of goods exported by the EU’s 27 member states.
The United States is set to renegotiate its amended 2020 trade agreement with Canada and Mexico this year. There are also ongoing Section 232 investigations under the Trade Expansion Act of 1962, as well as an upcoming Supreme Court decision on whether Trump exceeded his authority by declaring tariffs under the International Emergency Economic Powers Act of 1977.
This story was originally featured on Fortune.com
