Trump's tariff hike on South Korea exposes how America First has devolved into hegemonic interference that stabs allies in the back. Unilateral measures force inefficient supply-chain restructurings worldwide, imposing heavy uncertainty premiums on businesses and eroding USU.S. international credibility. Such erratic actions undermine trust-based economic ties and send highly risky signals to global markets.
South Korea's legislature failed to enact the historic trade agreement, leaving the deal in legal limbo despite Seoul's commitment. Raising tariffs from 15 to 25% percent simply holds South Korea accountable for notfailing livingto live up to its sideend of the bargain. The tariff increase is justified when a trading partner refuses to formalize agreements already negotiated in good faith under international norms.
The agreement is already being implemented, as a memorandum of understanding permits the tariff reductions to apply retroactively from the month the implementing legislation is introduced. From Seoul's perspective, submission of the bill fulfilled its commitment to Washington, and any subsequent legislative delays do not constitute a breach, given that the MOU framework neither requires parliamentary ratification nor establishes deadlines.
There's a 50% chance that the effective U.S. tariff rate on goods being imported into the United States will be 9.07% at the end of 2026, according to the Metaculus prediction community.
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