South Korea stunned by Trump's latest tariff hike

"South Korea's government appeared to be blindsided last week by US President Donald Trump accusing Seoul of "not living up" to a bilateral trade deal concluded in October, and announcing a new 25% tariff on Korean imports. The Asian nation has yet to ratify the US trade agreement in the National Assembly. The legal step, expected in late February or early March, was considered a formality as South Korea signaled readiness to accept tariffs of 15% on a range of its most critical exports to the US, including cars and pharmaceuticals."

"South Korea had also committed to investing $350 billion (nearly 297 billion) in the US in return for the 15% tariff rate. With Trump flipping the table yet again, analysts warn of a growing sense of discontent with the US in the allied country, which could motivate Seoul to forge closer trade and economic ties with other nations, including China. In another move that has been perceived as aggressive and unfriendly in Seoul, the US Treasury Department placed the Korean currency, won, on its monitoring list last week for possible manipulation."

""For the Korean government, dealing with an individual like Trump who operates outside predictable institutional norms is undoubtedly burdensome," said Hyobin Lee, a professor at Sogang University in Seoul. "He is not always logical and is highly unpredictable, which makes him difficult to trust.""

US President Donald Trump accused Seoul of "not living up" to a bilateral trade deal and announced a 25% tariff on Korean imports. South Korea has not yet ratified the US trade agreement in the National Assembly, with ratification expected in late February or early March. Seoul had signaled willingness to accept 15% tariffs on key exports, including cars and pharmaceuticals, and pledged $350 billion in US investment in return. The US Treasury placed the won on a monitoring list for possible manipulation. South Korean officials have scrambled to arrange talks in Washington as analysts warn growing discontent could push Seoul toward closer ties with other countries, including China.

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