Trump Hikes Tariffs on South Korea to 25% Over Investment Bill Delay
US President Donald Trump has imposed a 25% tariff on South Korea, citing delays in passing a bill that would permit US investment in the Korean economy. This marks a major escalation in ongoing trade tensions between the two long-standing allies.
Key Takeaways
- Tariffs on South Korea increased to 25% by President Trump.
- Trigger cited is the delay of a US investment bill in South Korea.
- Move escalates existing trade disputes and strains the US-South Korea alliance.
- Renegotiation of the KORUS free trade agreement has been stalled.
Background of the Trade Dispute
The tariff hike is the latest in a series of disagreements. The two nations have clashed over the US withdrawal from the Trans-Pacific Partnership (TPP) and US tariffs on steel and aluminum imports.
Washington has consistently pushed Seoul to open its markets wider to US goods and services and to reduce its trade surplus with the United States.
Stalled Negotiations and Criticisms
Efforts to renegotiate the US-Korea Free Trade Agreement (KORUS), signed in 2012, have hit a wall. The US has also criticised South Korea’s use of non-tariff barriers and its handling of US intellectual property rights.
Implications for the Alliance
South Korea remains a key US ally in Asia and one of its largest trading partners. However, this tariff move is likely to further strain diplomatic and economic relations. Analysts warn it could signal a broader shift in US trade policy within the region.
The action is viewed as a significant escalation that may impact wider US strategic interests.
