President Donald Trump on Monday threatened to raise the tariff rate on imports from South Korea to 25pc from 15pc, citing the country's lack of progress on ratifying a trade deal with the US.
"Because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15pc to 25pc," Trump posted on his social media platform.
South Korea was among the top US trading partners that committed to a trade agreement with the US to lower tariffs. Seoul promised $20bn/yr of cash investment in US manufacturing capacity, as well as purchases of 3.3mn t/yr of US LNG. The two countries also agreed to cooperate on shipbuilding. Trump as a result capped tariffs on imports from South Korea at 15pc.
The White House has not released any executive order backing Trump's South Korea tariff threat, nor did it immediately provide other details.
Trump's ability to quickly levy tariffs on South Korea and other trading partners is under review at the US Supreme Court, which is expected to issue a ruling soon.
Trump's administration has not issued major tariff decisions in recent months, despite Trump's threats to do so.
Trump earlier this month threatened to impose a 25pc tariff on US imports from countries doing business with Iran, but no decision has been made.
Trump on 17 January threatened to impose a 10pc tariff on imports from the UK and seven EU members, which pushed back against his bid to annex Denmark's Greenland territory. Trump on 21 January withdrew that tariff threat after a slide in US stock and financial markets.
Trump on 24 January threatened to impose a 100pc tariff on all goods imported from Canada if it signed a trade deal with China.
Canada is a major source of the US' lumber imports, but South Korea is not.
