US President Donald Trump has announced a significant increase in tariffs on imports from South Korea, raising them to 25%. This decision comes after he accused South Korea of failing to honour a trade agreement made last year.
In a statement on social media, Trump explained that tariffs on various products, including automobiles, lumber, and pharmaceuticals, would rise from 15%. He expressed frustration over the slow progress of South Korean lawmakers in approving the deal, while claiming the US had acted quickly to lower its tariffs as agreed.
South Korean officials responded by stating they had not received official notice about the tariff increase and are seeking urgent discussions with the United States. The country’s Industry Minister, Kim Jung-kwan, who is currently in Canada, plans to travel to Washington soon to meet with US Commerce Secretary Howard Lutnick.
Following the announcement, shares in some South Korean companies dropped, with car manufacturer Hyundai seeing a decline of about 2.5%. Stocks related to pharmaceuticals and timber also fell.
Last October, South Korea and the US agreed on a deal requiring South Korea to invest $350 billion (£256 billion) in the US, particularly in shipbuilding. The agreement was submitted to South Korea’s National Assembly on 26 November and is expected to be passed in February.
Tariffs are fees paid by businesses that import goods. In this case, US companies will face a 25% tax on products imported from South Korea. Trump has used tariffs as a tool in foreign policy throughout his presidency, and international reactions continue to unfold.
Vocabulary List:
- Tariffs /ˈtærɪfs/ (noun): Fees paid by businesses that import goods.
- Imports /ˈɪmpɔːrts/ (noun): Goods brought into a country for trade.
- Agreement /əˈɡriːmənt/ (noun): A negotiated and typically legally binding arrangement between parties.
- Frustration /frʌsˈtreɪʃən/ (noun): The feeling of being upset or annoyed due to inability to change or achieve something.
- Progress /ˈprəʊɡrɛs/ (noun): Forward or onward movement toward a destination.
- Decline /dɪˈklaɪn/ (verb): To become less in amount quality or strength.
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