Business Korea | 27 January 2026
Korea’s delay in trade agreement ratification prompts Trump to increase tariffs
by Jung Min-hee
U.S. President Donald Trump has declared a surprise increase in tariffs on major items including Korean automobiles from the existing 15% to 25%.
Trump wrote on his social media Truth Social on jan. 26 (local time), “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 15% to 25%.”
The cause of this situation lies in Korea's failure to enact legislation to implement the tariff agreement concluded between the two countries last year. At that time, Korea promised $350 billion in investment to the U.S. and $100 billion in purchases of U.S. energy (LNG, etc.) in exchange for lowering U.S. tariffs from 25% to 15%.
According to the National Assembly Bill Information System, five special bills related to Korea's strategic investment in the United States have been proposed but are stuck in the National Assembly's Finance and Economy Committee.
Trump’s surprise move has thus exploited the difference in the trade legal systems of Korea and the U.S. The United States can immediately impose tariffs, citing national security reasons, through Trade Expansion Act Section 232 with only a presidential executive order without congressional approval. In contrast, Korea must obtain ratification from the National Assembly for treaties concerning legislative matters or trade agreements that impose significant burdens on national finances, according to Article 6 of the Trade Procedure Act and the Constitution.
As Trump is aware of the Korean trade legal system, he has made it clear that the Korea-U.S. tariff deal should be "enacted." In other words, he demanded that Korea implement the deal with "legal binding force" that goes beyond executive-level promises (MOU level). He clearly indicated that no matter how much the Korean administration promises, if the National Assembly does not act, there is no deal.
Meanwhile, the Blue House has urgently dispatched Minister of Trade, Industry and Energy Kim Jung-kwan to the United States in response to Trump’s announcement of tariff increases on Korean products. Kim, currently staying in Canada, will change his schedule to visit the United States promptly and attempt direct negotiations.
The Blue House spokesperson’s office announced on Jan. 27, “Minister Kim plans to visit the United States to discuss this matter with Commerce Secretary Howard Lutnick.” The government began discussions on specific countermeasures by holding a joint meeting of relevant ministries chaired by the Policy Office director.
The Ministry of Economy and Finance stated, regarding the U.S. investment-related bills, “We are currently ascertaining the U.S. side’s intentions," adding, "We will continue to communicate with the U.S. government by explaining the status of the bills in the Korean National Assembly to the U.S. side.”
A ministry official emphasized, “We were originally scheduled to request National Assembly cooperation on the special bills through a meeting between the deputy prime minister and the chairman of the National Assembly Finance and Economy Committee scheduled for this afternoon,” adding “Including this, we will continue to actively consult with the National Assembly.”
