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Since January 2025, the Trump Administration has imposed tariffs that affect some of South Korea's top exports. These new tariffs, building on 2018 tariff actions, have contributed to challenges in an important U.S. bilateral relationship at a time when both countries have new presidentsaffecting most exports from South Korea. In 2024, South Korea was the sixth-largest U.S. goods trading partner, with bilateral trade in goods and services totaling $242200 billion. The U.S.-South Korea (KORUS) Free Trade Agreement (FTA) is, the second-largest comprehensive U.S. FTA by value.
Some Members of Congress have requested that the Trump Administration keep Congress informed of ongoing trade negotiations, including with South Korea, eliminated virtually all tariffs on imports from the other country upon entry into force in 2012.
In July 2025, the U.S. and South Korean governments announced a trade deal in response to the Trump Administration's tariff actions, though its details have yet to be finalized. Congress may consider whether U.S. tariff actions and the July trade deal are consistent with U.S. obligations under the KORUS FTA and whether any potential agreements the sides might negotiate should require, which was ratified by Congress, and whether the finalized trade deal requires congressional approval. Some Members have introduced legislation that would require a joint resolution of approval for the President to impose tariffs against U.S. FTA partners.
President Trump has imposed tariffs on U.S. imports from South Korea using authorities under Section 232 of the Trade Expansion Act of 1964 (19 U.S.C. §1862, as amended), the International Emergency Economic Powers Act of 1977 (IEEPA, 50 U.S.C. §§1701 et seq.), and Section 201 of the Trade Act of 1974 (19 U.S.C. §2251). (Section 201 tariffs on imports of solar products from South Korea have been in place since 2018 and are scheduled to phase out in 2026.)
Steel and Aluminum. In 2018, President Trump invoked Section 232 to impose tariffs on U.S. imports of steel (25% tariff) and aluminum (10% tariff) after the Commerce Department determined that such imports "threaten to impair" U.S. national security. South Korea, a top supplier of U.S. steel imports, was one of the first countries to negotiatesubsequently negotiated an import quota in lieu of the 25% tariff on South Korean-origin steel in 2018. South Korea did not negotiate an agreement for aluminum products, which were not a major export at the time. In February. Since March 2025, President Trump has eliminated all country exemptions from prior negotiations and generaland most product exclusions, expanded the scope of covered products, and raised tariffs on aluminum to 25steel and aluminum tariffs to 50%. In 2024, U.S. steel imports from South Korea were valued at $2.9 billion (fourth-largest U.S. source) and U.S. aluminum imports at $781 million (fourth-largest U.S. source). Effective June 4, 2025, President Trump raised steel and aluminum tariffs further to 50%.
Autos. In March 2025, President Trump invoked Section 232 and announced 25% tariffs on U.S. imports of automobiles and certain automobile parts based on the findings of a 2019 investigation. President Trump did not implement tariffs in 2019 based on that investigation; he directed the U.S. Trade Representative (USTR) to negotiate with trading partners. In the March 2025 proclamation, the President stated that USTR's negotiations "did not lead to any agreements of the type contemplated by [S]ection 232," and national security concerns "remain and have escalated." He also said Section 232 investigation. The President stated that 2018 revisions to the KORUS FTA, which included provisions designed to support U.S. auto exports to South Korea and which extended the 25% U.S. tariff on light trucks to 2041, "have not yielded sufficient positive outcomes."were insufficient to address national security concerns. In 2024, automobiles and auto parts accounted for 37% of total U.S. goods imports from South Korea. (Automobiles and parts accounted for and around 3% of total U.S. goods exports to South Korea.) President Trump has issued guidance to prevent goods subject to Section 232 automotive tariffs from being subject to Section 232 steel and aluminum tariffs and IEEPA tariffs.
Investigations
Other Tariff Actions. Since March 2025, the Commerce Department has initiated other Section 232 investigations including oninto products like copper, semiconductors, pharmaceuticals, and critical minerals. The investigation into copper imports, completed on June 30, 2025, led to certain copper imports being subject to 50% tariffs, effective August 1. (Other investigations are ongoing.) Over the past five years, South Korean companies have increased U.S.their investment in the U.S. semiconductor and advanced battery industries, both of which use copper and critical mineral products in their supply chains. Potential, and U.S. tariffs on these goods could affect South Korean industries and their global supply chains.
On April 2, President Trump declared a national emergency under IEEPAIEEPA in response to "large and persistent annual U.S. trade deficits" that he attributed to unfair trade practices. In 2024, the United States' $66 billion trade deficit with South Korea was its ninth largest. The President imposed a 10% tariff on most U.S. imports and country-specific tariff rates for certain trading partners, including 25% for South Korea. In 2024, the $66 billion U.S. trade deficit with South Korea was its ninth largest. On April 9, the President suspended the country-specific rate for 90 days until July 9. There have been several legal challenges in U.S. courts to the U.S. tariffs imposed under IEEPA.
The South Korean government has not retaliated against U.S. tariff actions. South Korean officials have been negotiating with the Trump Administration to mitigate the tariffs. In mid-May, both countries agreed to negotiate on six issue areas, including the bilateral trade imbalance, nontariff measures, economic security, and digital trade. South Korean President Lee Jae-myeong's new trade minister stated an intent to expedite the negotiations, but did not specify a timeline. Prior to that, some observers had speculated that the newly elected President Lee would take a wait-and-see approach to observe other countries' trade negotiations with the United States.
In other efforts, South Korea's customs agency has sought to enhance cooperation with U.S. Customs and Border Protection, including to combat illegal transshipment of China-made goods by companies seeking to avoid U.S. tariffs. In March, a South Korean airline agreed to purchase $32.7 billion worth of aircrafts and parts from U.S. aerospace companies.
Under the Biden and previous South Korean administrations, the two countries committed to strengthening economic security cooperation in areas such as supply chain resiliency, emerging technologies, and semiconductors—a key South Korean industry. South Korean firms have pledged investment in the United States in various industries. In 2024, the United States was the top destination for South Korean foreign direct investment ($22 billion, or 34% of South Korea's total outward FDI flow).
U.S. tariff actions may complicate prospects for continued bilateral economic security cooperation, but may present opportunities to address nontariff barriers in ongoing trade negotiations. Some policy experts have pointed to South Korea's U.S. investment and comparative advantage in key sectors of U.S. interest (e.g., shipbuilding) as potential areas for expanding cooperation. Others contend the United States may address nontariff barriers, such as on digital trade, that U.S. businesses face in South Korea through negotiations. Some Members of Congress have expressed support for strengthening U.S.-South Korea economic ties as part of the alliance.
In July, President Trump announced the two countries had reached a "full and complete trade deal." According to the White House and a South Korean press release, the trade deal would:
The U.S. and South Korean governments have yet to publish further details. This may be due to the two governments' inability to finalize certain details of the deal, including the implementation of the 15% auto tariffs. Prior to the imposition of the auto tariffs, U.S. imports of South Korean autos were eligible for duty-free treatment under the KORUS FTA; U.S. auto imports from non-FTA partners were subject to a 2.5% tariff. The South Korean government reportedly requested the auto tariffs be lowered to 12.5%. Other aspects of the deal that remain unclear include whether South Korea is guaranteed MFN status for tariffs semiconductors and pharmaceuticals (i.e., tariffs imposed on those South Korean products will not be higher than other countries), and how South Korea will implement its investment commitment. Some South Korean analysts say the lack of a written agreement may provide the United States an opportunity to revisit issues that were reportedly sidelined during an August 2025 summit between President Trump and South Korean President Lee Jae Myung, including U.S. access to the South Korean rice and beef markets.
The July trade and investment deal may expand cooperation in key sectors of U.S. interest at a time when some Members of Congress have expressed support for strengthening U.S.-South Korea economic ties. After the summit, Hanhwa Group, a South Korean firm that acquired Philly Shipyard in 2024, announced a $5 billion investment in the facility as part of South Korea's commitment to support the U.S. shipbuilding industry. U.S. and South Korean firms also reportedly signed 11 memoranda of understanding covering investment and cooperation in various industries, including nuclear, aviation, shipbuilding, and critical minerals. On September 4, U.S. immigration authorities detained more than 300 South Korean nationals at the Georgia construction site of a manufacturing plant co-owned by South Korean firms Hyundai and LG. The move has raised questions about potential impacts on South Korean investment in the United States, including plans by Hyundai to invest $26 billion.