Story perspectives

Trump Threatens Tariff Hike, South Korea Prepares Response

1/28/2026

Summary

Story summary

U.S. President Donald Trump has threatened to raise tariffs on South Korean exports from 15% to 25%.
He cited delays in ratifying the deal and criticized the South Korean legislature for slow action.
Economist Justin Wolfers warns that Trump's increasingly interventionist policies could harm long-term U.S. growth and innovation.
South Korea's government is preparing to respond to the tariff threats, a move that could further strain its economy.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 significantly raised U.S. tariffs, resulting in a 66% drop in international trade and criticism from economists like John Maynard Keynes. This protectionist approach mirrored earlier trends during the Great Depression, prompting retaliatory measures from other nations. Trump's proposed tariffs on South Korean exports evoke similar risks, potentially destabilizing global markets and echoing the economic strains of the 1930s.

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Story summary

U.S. President Donald Trump has threatened to raise tariffs on South Korean exports from 15% to 25%.
He cited delays in ratifying the deal and criticized the South Korean legislature for slow action.
Economist Justin Wolfers warns that Trump's increasingly interventionist policies could harm long-term U.S. growth and innovation.
South Korea's government is preparing to respond to the tariff threats, a move that could further strain its economy.

1 / 2