US unveils 25% tariffs on S.Korea, sets Aug. 1 deadline for agreement

US President Donald Trump on Monday announced new tariffs of 25% on South Korea, set to take effect on Aug. 1 unless the two countries reach a trade agreement before the deadline following a 90-day pause.

In a letter addressed to South Korean President Lee Jae-myung, Trump said the US will start imposing a 25% tariff on almost all goods from the country.

The move follows a a 25% tariff on imported vehicles and automotive parts, along with 50% duties on steel and aluminum, introduced in April.

The so-called 25% reciprocal tariffs, if implemented, will likely take a heavy toll on Korean carmakers and other manufacturing companies. 

The announcement, posted on his Truth Social platform, comes as Seoul has been stepping up talks with Washington to avoid heavy duties on its exports to the world's largest economy.

In response to the letter, South Korean presidential office said the two countries' senior officials have discussed measures to approach bilateral negotiations in a manner that strengthens their alliance.

On Monday, Wi Sung-lac, South Korean national security advisor to president, held a meeting with US Secretary of State Mark Lubio and held "in-depth discussions" aimed at improving bilateral relationships, according to South Korea's presidential office.

“We conveyed our hope to hold a summit with the US at an early date to advance discussions on key issues and produce mutually beneficial outcomes,” the presidential office said in a statement on Monday, following Trump’s announcement of new tariffs.

“In response, Washington expressed understanding ... and said that it hoped the two sides would maintain close communication to reach an agreement before Aug. 1,” it added.

South Korea had been in a leadership vacuum after the impeachment of former President Yoon Suk Yeol in early December over his ill-fated martial law decree.

President Lee, who was sworn in last month, has yet to hold a summit with Trump.

Their meeting, scheduled to take place on the sidelines of the G7 gathering in Calgary, Canada, was called off after Trump abruptly returned to Washington amid escalating tensions in the Middle East.

South Korea remains on Washington’s watchlist of nine countries with current account and trading surpluses.

Its goods and services trade balance with the world’s largest economy increased by $14 billion to $55 billion throughout 2024, according to the US Department of Treasury.

Write to Yeonhee Kim at yhkim@hankyung.com