Seoul weighs tariff risk as US hikes EU auto duties to 25%

South Korea's government said Friday it will closely monitor any spillover effects on its own U.S. trade deal after the Trump administration announced plans to raise automobile and truck tariffs on European Union countries from 15% to 25% next week.

The announcement has put Seoul on alert because South Korea struck a similar deal with Washington last year that lowered auto tariffs from 25% to 15% — and officials fear the EU reversal could set a precedent that undermines Korea's own terms.

A Cheong Wa Dae spokesperson said the government would assess the impact of the new EU tariff schedule and act to protect South Korea's interests. "We will monitor related developments, analyze potential impact on us and respond accordingly," the official said, according to The Korea Times.

Seoul has maintained active communications with Washington since the announcement. "The government is closely and frequently communicating with the U.S. side to discuss ways to implement our tariff agreement with the U.S. and we will continue efforts to ensure that South Korea-U.S. trade relations are managed in a stable manner," the spokesperson said.

Trump cited the EU's failure to comply with the terms of their existing trade deal as the reason for the rate increase. The EU's automobile tariff had been cut from 27.5% to 15% under an agreement reached the prior year, according to The Korea Times.

Some analysts attributed the reversal to a broader diplomatic dispute: the EU has declined to back a U.S.-led effort to provide military escorts for merchant vessels through the Strait of Hormuz, and observers interpret the tariff hike as retaliation for that refusal, The Korea Times reported.

Seoul said it would demand equal treatment under any revised framework. "We will respond based on the principles of maintaining the balance of benefits under the existing South Korea-U.S. agreement and ensuring treatment no less favorable than that given to other countries," the Cheong Wa Dae spokesperson said.

Trump has also publicly criticized South Korea as "not being helpful" despite the U.S. military presence on the Korean Peninsula, adding to concerns in Seoul that its own trade terms could face fresh scrutiny as the White House broadens its economic pressure campaign.