U.S. Tariffs Slam South Korean Exports: Steel Autos Beauty Goods Suffer as Trade Tensions Escalate in 2025

Listeners, welcome to South Korea Tariff News and Tracker, where today’s headlines highlight the ongoing turmoil created by recent U.S. tariffs and the evolving relationship between Washington and Seoul.

The Trump administration’s tariff policies have hit South Korean exporters hard in 2025. According to Maeil Business Newspaper, as of April and May this year, U.S. tariffs were hiked to 25% on automobiles and parts and up to 50% on steel and aluminum, core export sectors for South Korea. These sharp increases directly cut Korea’s export volumes: August exports to the U.S. dropped 12% year-on-year, with steel and automobile shipments falling 15% and 2% respectively. As a result, South Korea’s standing as a U.S. import source eroded, dropping from seventh in 2024 to tenth this year—the lowest rank since 1988.

In response to tariff pressures, Seoul’s trade deficit with the U.S. narrowed by 9%, but at the expense of broad export contraction and reduced market share. Meanwhile, Taiwan, Ireland, and Switzerland have overtaken Korea in the U.S. import rankings, with Taiwan particularly benefiting as its key exports, like semiconductors, face fewer direct tariff penalties.

Meanwhile, the negotiations over a massive $350 billion investment package demanded by Washington remain tense. South Korean Foreign Minister Cho Hyun, speaking with JoongAng Sunday, cautioned that domestic criticism of the deal is not anti-Americanism but a reflection of the urgent need to safeguard national interests. Seoul insists that any agreement burdening citizens must be ratified by its National Assembly, rejecting backroom negotiations and keeping commercial reasonability at the forefront. Both sides are engaged in a complicated give-and-take, with hopes of finalizing an accord before the Asia-Pacific Economic Cooperation summit at the end of October.

Tariffs aren’t limited to heavy industry. U.S. duties on Korean consumer goods, including beauty products, are also moving upwards: the White House recently set tariffs at 15% on popular cosmetics, higher than the baseline but below the originally proposed 25%, according to AOL News. This means listeners can expect to pay more for trending K-beauty items—a sector booming in 2024, with $1.7 billion in U.S. imports—but the higher costs likely won’t halt demand among enthusiasts.

President Donald Trump is set to visit South Korea ahead of the APEC Summit in Gyeongju, where further trade talks are expected. On the sidelines, both countries are feeling pressure from China’s regional strength, the EU’s doubling of steel tariffs, and shifting global trade patterns.

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