📉 The 25% Shock: Is the U.S.-Korea Alliance at a Breaking Point?
The "truce" is over. While the world was looking for a soft landing in 2026, Donald Trump just pulled the rug out from under South Korea. With a single social media post, the U.S. President announced he is cranking tariffs on Korean goods from 15% to 25%, accusing Seoul of "failing to live up to its deal."
This isn't just a rounding error—it’s a direct hit to the heart of the Korean economy. We aren't talking about abstract numbers; we're talking about the cars in your driveway and the chips in your phone. From Hyundai and Kia to lumber and pharmaceuticals, the "compliance or consequences" era has officially arrived.
The "Why" Behind the Move: Trump claims South Korea’s legislature (the National Assembly) is stalling on a "Historic Trade Agreement" reached in July 2025 and reaffirmed in October. This deal included a massive $350 billion investment pledge from South Korea into the U.S., specifically in shipbuilding and semiconductors.
Immediate Market Bloodbath: The news hit the Seoul markets hard this morning. Shares of Hyundai Motor and Kia tumbled between 4% and 5% in early trading, while the South Korean won
weakened significantly against the dollar.
