New Trump Tariff Proposal Sparks Global Market Uncertainty

• Trump plans a tariff hike to 25% citing South Korea’s failure to finalize the trade deal.
• Key sectors like autos lumber and pharmaceuticals could face higher U.S. import tariffs.
• A Supreme Court ruling may limit Trump’s authority to change tariffs without approval.

The Trump tariff hike on South Korean imports has emerged as a new source of trade uncertainty, after U.S. President Donald Trump signaled plans to raise tariffs to around 25%. Trump cited South Korea’s legislature for failing to finalize a trade agreement concluded last year, framing the delay as the basis for the proposed increase.

In a social media post, Trump noted that the tariff changes would affect sectors including automobiles, lumber, and pharmaceuticals, as well as other reciprocal tariffs. Under the current framework, South Korean exports face a 15% tariff, highlighting the scale of the proposed adjustment.

Trump Tariff Hike on South Korean Imports

Trump said South Korea has not followed through on commitments tied to tariff reductions. He stated that the United States moved quickly to lower its tariffs under the agreement and expects its trading partners to do the same.

Market analysts warned that the proposed tariff changes could affect major South Korean exporters. Hyundai Motor Co. shipped about 1.1 million vehicles to the United States in 2024, making the auto sector a key area of exposure. Reports from industry observers described the motion as part of broader efforts to increase trade pressure on U.S. allies.

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Trump also outlined broader tariff plans affecting other trading partners. He raised the possibility of 100% tariffs on Canadian products if Canada enters a trade deal with China. He further said he is considering new tariffs on European goods and linked the move to his policy focus on Greenland, which is part of the Kingdom of Denmark.

In addition, Trump said the United States may impose tariffs on exports from countries that maintain trade ties with Iran. He said the measure aims to increase pressure on Tehran during ongoing anti-government protests. The administration has not issued any official notice authorizing the tariff changes.

Domestic Reaction and Legal Constraints

Analysts said the tariff threats have added to global market uncertainty but noted that a pending Supreme Court decision could limit Trump’s authority to adjust import taxes. The court is scheduled to review the issue on February 20.

Polls indicate that some Americans are frustrated with Trump’s leadership approach, while allies have raised concerns about his aggressive immigration and foreign policy tactics. The debate continues ahead of the U.S. midterm elections scheduled for November 3, 2026.

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