South Korean Markets Plummet as Trump Imposes 25% Tariff

Seoul– South Korean financial markets took a sharp hit on Monday, July 7, following an unexpected announcement from U.S. President Donald Trump, who declared a 25% tariff on all South Korean imports, effective August 1. The move, aimed at addressing trade imbalances, intensified tensions with a key U.S. ally and sent ripples through global emerging markets, according to the sources.

The South Korean won weakened significantly, dropping 1.1% to 1,378 against the dollar its lowest level in two weeks shortly after Trump shared the tariff decision via social media. The broader impact was felt across emerging markets, which faced increased pressure as investors reacted to the heightened trade uncertainty.

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Trump’s announcement, cited longstanding trade deficits and perceived unfair trade practices as the rationale for the tariffs. The decision marks a significant escalation in U.S.-South Korea trade relations, prompting concerns about potential retaliatory measures and further market volatility