Trade Tensions Rise as Trump's Tariff Threat Shakes South Korea

South Korea reassured the U.S. about its commitment to a trade deal after President Trump announced tariff hikes due to delayed implementation of the pact. Despite South Korea's parliament pending five bills to enact the agreement, Trump's announcement has caused financial uncertainty and political tension.

South Korea moved to reassure the United States on Tuesday, affirming its commitment to a trade pact following President Donald Trump's statement that he would raise tariffs on imports from its ally. This action comes after Trump accused South Korea of delaying the enactment of the agreement signed last year.

The trade deal, struck with South Korean President Lee Jae Myung, involved $350 billion in investments in the U.S. in exchange for tariff reductions. Despite assurances from Seoul, Trump's announcement caught South Korean officials off guard, complicating efforts to balance their alliance and economic security.

Officials in South Korea are concerned about the financial implications, especially given the recent decline in the won. The South Korean government is pushing for the swift enacting of the agreement, with prominent officials set to visit the U.S. soon to negotiate further. In the meantime, the trade dispute has introduced volatility to South Korea's financial markets.