US President Donald Trump has accused South Korea of ”non-compliance” with the trade deal reached last year and announced he would raise tariffs on imports from South Korea to 25%.
In a social media post, President Trump said he would increase taxes on South Korea from 15% on a wide range of products, including automobiles, lumber, pharmaceuticals and “all other reciprocal tariffs.”
President Trump said that although South Korean lawmakers have been slow to approve the deal, “we have moved quickly to reduce tariffs in line with the agreement that was reached.”
South Korea said it had not received formal notification of the decision to increase tariffs on some of its products and wanted urgent talks with the US government on the issue.
The paper added that South Korean Industry Minister Kim Jung-kwan, who is currently visiting Canada, is scheduled to visit Washington as soon as possible to meet with US Secretary of Commerce Howard Lutnick.
The two countries reached an agreement in October last year, which included a promise that South Korea would invest $350bn (£256bn) in the US, some of which would go toward shipbuilding.
The agreement was submitted to the South Korean National Assembly on November 26 and is currently under review. According to local media, it is likely to be passed in February.
Customs duties are paid by companies that import products. In this case, U.S. companies would pay a 25% tax on goods they buy from South Korea.
Trump has frequently used tariffs as leverage to enact foreign policy during his second term in the White House.
On Saturday, he threatened to impose 100 per cent tariffs if Canada signs a trade deal with China.
Chinese officials said Monday that their “strategic partnership” agreement with Canada does not undermine other countries.
Canadian Prime Minister Mark Carney said his country is not pursuing and has “never” considered a free trade agreement with China.
He added that Canadian officials have made their position clear to U.S. officials.
Earlier, President Trump said he would impose import taxes on eight countries, including Britain, that oppose US plans to occupy Greenland, an autonomous territory of the Kingdom of Denmark, a member of the North Atlantic Treaty Organization (NATO).
He later backed away from threatening tariffs on Greenland, citing progress toward a “future agreement” for the island, an event that strained U.S. relations with Denmark and other NATO allies.