The Dow Jones (DJIA) is set to open Tuesday lower after President Trump announced a tariff hike on South Korea from 15% to 25%. Trump accused the country of failing to enact a trade deal reached last July, which includes a $350 billion investment in the U.S.
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“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%,” Trump said in a Truth Social post.
South Korean Lawmakers Review Investment Package as Industry Minister Plans U.S. Trip
In a translated statement, Kim Hyun-jung, a spokesperson for South Korea’s governing Democratic Party, said that five bills related to the $350 billion investment have been submitted to the National Assembly and are being reviewed. The Democratic Party holds a majority of 162 seats in the National Assembly out of a total of 300.
In addition, Kim Jung-Kwan, the country’s Industry Minister, will travel to the U.S. to meet with Secretary of Commerce Howard Lutnick.
Trump has revamped his strategy of tariff threats in recent days, previously threatening 10% tariffs on eight European countries and a 100% tariff on Canadian goods.