Trump slaps 25% tariff on Asian trading partners - RT World News

The US president has accused South Korea of stalling a “historic” trade deal

President Donald Trump has announced a sudden increase in tariffs on key South Korean imports, including cars, lumber and pharmaceuticals, raising tariffs from 15% to 25%.

The decision, announced Monday through its Truth Social platform, directly accuses South Korea’s legislature of failing to ratify “historically” a trade and investment agreement that was finalized with President Lee Jae Myung in October 2025.

Trump said that while the U.S. quickly reduced its tariffs as part of the deal, Seoul failed to honor its commitment, prompting punitive measures.

“President Lee and I reached a great deal for both countries… Why didn’t the Korean legislature approve it?” Trump wrote.

South Korea’s presidential office said it had not yet received any official notification from Washington and announced that the trade minister would travel to the United States for urgent talks.

The crisis centers on a deal first announced in July 2025 that offered to cut U.S. tariffs from 25% to 15% in exchange for substantial South Korean concessions, including a pledge to invest $350 billion in the United States. However, the deal has been suspended in South Korea’s National Assembly, where it faces significant political and economic scrutiny.

President Lee Jae Myung has publicly warned that demand for investment, especially if met in cash, could trigger a severe liquidity crisis. He drew parallels with the 1997 Asian financial crisis, during which South Korea nearly exhausted its foreign exchange reserves and required a major bailout from the International Monetary Fund.

The move against a key Asian ally is in line with Trump’s broader “America First” a trade strategy that uses the threat of steep tariffs as leverage to secure investment promises and favorable terms from trading partners.

A similar tactic was used in negotiations with the European Union, which pledged to invest $600 billion in the US and buy $750 billion worth of American energy. Last week, the European Parliament blocked the approval of the agreement, citing Trump’s “ongoing and escalating threats” against the bloc, including its plan to annex Greenland.