Korea (Rep.) scrambled to reassure the US on Tuesday after President Donald Trump accused Seoul of stalling a major investment and tariff agreement. Trump announced plans to raise tariffs on Korean imports, prompting urgent diplomatic and trade talks as both nations seek to resolve outstanding issues.
Korea (Rep.) moved quickly on 27 January 2026 to reassure the US that it still plans to carry out a major trade agreement, after President Donald Trump threatened to raise tariffs on Korean imports.
Trump said the tariff increase was a response to Korea (Rep.)’s delay in passing the deal through its parliament, which he claimed had not acted fast enough.
The agreement, struck last year, involved Seoul committing to invest USD 350 billion in the US in return for lower tariffs.
Trump said Korea (Rep.) has not fulfilled its obligations under the deal and announced plans to raise tariffs on Korean autos, lumber, pharmaceuticals, and other imports from 15% to 25%.
It was not immediately clear when the tariff increase would take effect.
Korean officials said they were caught off guard by the announcement. The country is now trying to manage the situation carefully, balancing its trade relationship with the US while also protecting its own economic and security interests amid rising pressure from Washington.
Seoul’s presidential office said it remains dedicated to implementing the deal and will continue the necessary steps to finalise it. In response, the President’s top policy aide called an emergency meeting, and the industry minister is expected to visit the US soon to meet with Commerce Secretary Howard Lutnick. A senior trade envoy will also travel to Washington to meet with US Trade Representative Jamieson Greer.
