US Treasury Secretary Scott Bessent revealed Wednesday that South Korea will be subject to 25% tariffs unless its legislature signs off on the countries’ bilateral trade deal. When asked during an interview with CNBC what signal the move sends to other countries that have already negotiated deals with the US, Bessent replied, “Sign the trade deal. The South Korean parliament has not passed the trade deal, so there is no trade deal until they ratify it.” Bessent confirmed that South Korea would face the 25% tariffs until the trade deal was ratified, saying, “I think it’s helpful to get things moved along.” The Treasury secretary’s comments come after a previous announcement by US President Donald Trump that he would be raising tariffs on Korean goods.

“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” Trump wrote in a Truth Social Post on Monday. As the EU moves to freeze ratification of its trade deal with the US over Trump’s belligerent stance on Greenland, some observers suggest that Washington’s hardball approach to trade with Korea is intended to send a warning to Europe. Bessent’s comments would seem to lend credence to this interpretation.  Trump hinted at the possibility of negotiations by stating that the US and South Korea would “work something out” on Tuesday. The South Korean government immediately sent Trade Minister Kim Jung-kwan to the US. Kim is set to arrive at Dulles International Airport, near Washington, at 9:25 pm Wednesday (local time).

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