Trump raises tariffs on South Korean imports to 25% from 15% over stalled trade deal (Oct 19)

What happened

President Trump announced on Truth Social on Monday that he is increasing U.S. tariffs on South Korean imports — autos, lumber, pharmaceuticals, and all other reciprocal tariffs — from 15% to 25%. He blamed South Korea's National Assembly for failing to enact the "historic" trade deal the two countries sealed in October 2025, under which Seoul pledged roughly $350 billion in U.S. investment in exchange for capped 15% duties. South Korea's presidential office said it had received no formal notification of the hike, and Trade Minister Kim Jung-kwan will head to Washington for emergency talks with Commerce Secretary Howard Lutnick.

Who’s affected

• Hyundai Motor / Kia (HYMTF, Korean listings): autos are 27% of South Korea's exports to the U.S., which absorbs nearly half of Korea's car exports; a 25% duty directly hits their U.S. pricing
• South Korean equities broadly (EWY ETF, KOSPI): KOSPI fell 0.7% and the won weakened 0.5% in early Tuesday trade; the hike puts Korea at a disadvantage vs. Japan and the EU, both at 15%
• Korean pharma exporters (Samsung Biologics, Celltrion): pharma explicitly named among the targeted sectors
• U.S. automakers and parts suppliers (GM, Ford): relative beneficiaries if Korean imports face higher duties
• Lumber importers and U.S. homebuilders: higher lumber costs add to the already depressed housing picture (NAHB sentiment at a 14-year low of 29)

Sources

klsescreener.comautomotiveindustrytoday.comals.com.vn