US Imposes 15% Tariffs on South Korean Goods Amid Escalating Trade Tensions and Tech Regulation Disputes
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US Imposes 15% Tariffs on South Korean Goods Amid Escalating Trade Tensions and Tech Regulation Disputes
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The US-South Korea tariff landscape has radically changed through a string of recent executive orders and trade negotiations under President Donald Trump. The headline figure: as of August 1, the US government implemented a 15% tariff on most goods imported from South Korea. This comes directly from an agreement reached after weeks of talks, with US officials stating that the deal also included substantial American investment commitments in return, though many details remain under negotiation according to industry sources and the Ministry of Trade in Seoul. The effect is especially pronounced in product classes like cars, steel, and home appliances, where US tariffs have wiped out prior advantages from the Korea-US Free Trade Agreement.
Multiple reports—such as coverage by Maeil Business Newspaper—highlight that Korean exports to the US fell 12% over the past month, their sharpest drop since 2022. Automobile and steel exporters are among the hardest hit but critical tech sectors like semiconductors or advanced batteries, which saw robust sales earlier in the year, are now facing threats of tariff expansion. Trump declared just days ago at a dinner with industry leaders that the US may soon impose steep new tariffs on foreign semiconductors unless manufacturers bring production to American soil.
Relations in the tech sector have further soured after the South Korean parliament advanced the contentious Online Platform Act, which the White House and many US tech associations believe unfairly targets American companies while sparing Chinese counterparts. Both Trump and trade groups warn this could trigger even “substantial additional tariffs” unless South Korea amends these digital regulations. The Computer & Communications Industry Association estimates over $100 billion in US tech market revenue could be affected.
While South Korean President Lee Jae-myung and his administration insist they’re acting to increase digital fairness, American negotiators say the approach risks fueling a major trade clash. The US State Department continues to urge Seoul to lower barriers for American technology companies and ensure due process for firms facing competition investigations, but so far the two sides have not reached a final accommodation.
President Trump is also preparing to visit South Korea next month for the Asia-Pacific Economic Cooperation summit, where economic and trade collaboration will be central topics. Many expect him to press for further market opening and to negotiate directly with Korean and Chinese leaders on pending tariff matters.
Major Korean conglomerates, including Samsung, Hyundai, SK, and LG, are pledging billions in new US investments to mitigate risks and maintain market access. For now, Korean exporters are facing considerable uncertainty, with tariff rates and affected sectors potentially shifting at short notice.
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