Trump orders review of trade agreements, raising concerns for KORUS FTA

U.S. President Donald Trump has directed a sweeping review of existing trade agreements and reforms through the imposition of tariffs, putting the U.S.-South Korea Free Trade Agreement (KORUS FTA) and South Korean exports under scrutiny. If KORUS FTA becomes a target for renegotiation, this would intensify pressures for open market access, and the universal application of tariffs on all imports could inevitably lead to a significant blow to South Korean exports.

On Monday (local time), the White House announced that Trump signed a presidential memorandum shortly after his inauguration, initiating the implementation of his “America First” trade policy. The memorandum instructed the U.S. Trade Representative (USTR) to recommend appropriate revisions to existing free trade agreements with partner countries to “secure or maintain reciprocal and mutually beneficial concessions.” The move signals a comprehensive review of trade agreements, with a clear directive to renegotiate terms favoring the U.S.

The KORUS FTA, part of the U.S.’s portfolio of existing trade agreements, is expected to be reviewed. During Trump’s first administration, a renegotiation of the KORUS FTA led to the extension of a 25% tariff on South Korean-made pickup trucks—originally set to expire in 2021—until 2040.


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