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Trump says South Korea 'not living up' to trade deal, hikes tariffs to 25% on key imports
Fox Business· 2026-01-26 23:35
Core Viewpoint - President Trump has announced an increase in tariffs on South Korean imports of autos, lumber, and pharmaceuticals from 15% to 25%, citing South Korea's failure to comply with the trade agreement [1][5]. Group 1: Tariff Increase Details - The new tariffs will apply to various sectors including autos, lumber, and pharmaceuticals, reflecting a significant increase aimed at enforcing trade compliance [1][5]. - The increase in tariffs is part of a broader strategy by the Trump administration to use tariffs as leverage rather than temporary negotiating tools [8]. Group 2: Trade Agreement Context - Trump emphasized that the South Korean legislature has not approved the trade agreement, which he views as a failure to uphold the terms of the deal [2][5]. - The announcement comes as the administration awaits a Supreme Court ruling regarding the legality of certain trade duties imposed in 2025, which could impact future tariff actions [8]. Group 3: Economic Implications - Tariffs are essentially taxes on imported goods, which are typically paid by companies but often passed on to consumers through higher prices, potentially increasing the cost of living [11]. - The timeline for when the higher tariffs will take effect remains uncertain, as does South Korea's potential response to this decision [11].