Trump likely to impose 15% tariffs, costing Korea billions
Published: 20 Jan. 2025, 18:36
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- SARAH CHEA
- [email protected]
![U.S. President-elect Donald Trump speaks at a rally ahead of the 60th presidential inauguration in Washington on Jan. 19. [AP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/01/20/bc46ae41-bf08-4e9c-a0e6-698ed36905f1.jpg)
U.S. President-elect Donald Trump speaks at a rally ahead of the 60th presidential inauguration in Washington on Jan. 19. [AP/YONHAP]
As Donald Trump returns to the White House, he intends to implement blanket tariffs of up to 15 percent on all imports immediately after his inauguration using section 122 of the Trade Act of 1974.
“Trump could impose the tariffs on his own using emergency measures, but appears to have given much consideration for the policy’s legitimacy and efficiency,” a diplomatic source told the JoongAng Ilbo, an affiliate of the Korea JoongAng Daily, on the condition of anonymity on Sunday.
“It’s highly likely that Trump will provide Section 122 of the U.S. Trade Act of 1974 as evidence to support his intention, which is well-suited to his strategy to legally impose tariffs, and use it as a weapon to initiate negotiations [with countries],” the source added.
The trade law specifies that it allows quotas and tariffs of as much as 15 percent for up to 150 days against one or more countries that have “large and serious” balance-of-payment surpluses with the United States. The imposition can be extended by Congress.
“The five-month temporary period, ostensibly, could be seen as a burden for Trump, but at the same time, can be a guideline to achieve results quickly,” said another diplomatic source.
“The fact that the decision to impose tariffs is renewed every five months could serve as a deadline to accept Trump’s demands to avoid an extension.”
The Republican Party has taken control of the both U.S. Senate and House of Representatives, which means Trump is less likely to face opposition even if he requests an extension on tariffs. Such a scenario would virtually bestow him with the authority to run negotiations with trade partners as he sees fit every five months.

The largest trade deficit in goods for the United States is with China, which stood at $278.7 billion in 2023, followed by Mexico at $161.4 billion and Vietnam at $104.6 billion. Korea ranked eighth at $51 billion.
Trump warned that his administration will impose tariffs of 60 percent on China and 25 percent on Mexico and Canada.
The president-elect once called Korea a “money machine” while discussing the costs of maintaining U.S. troops in Korea, claiming that he would raise the cost for Seoul nine times that which was agreed upon with the Joe Biden administration.
The tariff hike will cost Korea tens of billions of dollars, according to think tank estimates, with autos and auto parts — the top exports to the United States — taking the biggest hits.
If the United States imposes blanket tariffs of 20 percent on Korea and 60 percent on China, Korea’s annual exports will drop by $44.8 billion, according to a prediction by the Korea Institute for International Economic Policy.
![Tesla CEO Elon Musk reacts as President-elect Trump speaks at a rally ahead of the 60th presidential inauguration in Washington on Jan. 19. [AP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/01/20/3b646ab8-b3b7-44fb-9110-4a6254253130.jpg)
Tesla CEO Elon Musk reacts as President-elect Trump speaks at a rally ahead of the 60th presidential inauguration in Washington on Jan. 19. [AP/YONHAP]
The Korea Institute for Industrial Economics & Trade, meanwhile, predicted that the country's exports will contract by up to 13.1 percent if the tariffs reach 20 percent.
Korea’s exports to the United States rose 10.5 percent on year to a record high of $127.8 billion last year, according to the Ministry of Trade, Industry and Energy. It has hit fresh highs for seven consecutive years since 2018, when it posted $72.7 billion. Korea’s trade surplus with the United States also hit a new high of $55.7 billion last year.
The announcement of the new tariff rules will likely come immediately after Trump takes office.
The president-elect has promised a “historic” day 1 for his second term, adding that “every radical and foolish executive order of the Biden administration will be repealed within hours of when I take the oath of office,” during his Victory Rally at the Capital One Arena in Washington on Sunday.
He went on, “Somebody said yesterday, don’t sign so many in one day, let’s do it over a period of weeks. I said... no, we’re doing them tomorrow.”
The Washington Post reported that Stephen Miller, the incoming deputy chief of staff for policy, gave a short briefing to the Republican leadership Sunday on the executive orders Trump plans to unleash. The orders include a 35-page report containing details on energy policies and immigration.
“A tariff rate of up to 20 percent — and 60 percent on Chinese imports — appears to be set, so it’s urgent to come up with practical measures to respond to that,” the diplomatic source said.
BY KANG TAE-HWA, SARAH CHEA [[email protected]]
with the Korea JoongAng Daily
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