U.S. President Donald Trump has reignited global trade tensions by announcing a sweeping 25% tariff hike on South Korean imports, targeting key sectors including autos, pharmaceuticals, and lumber. The surprise move, revealed through a Truth Social post, triggered immediate market reactions, with Hyundai shares sliding and investors bracing for economic fallout. As the U.S.–South Korea trade deficit returns to the spotlight, economists warn the tariffs could slow South Korea’s GDP growth, disrupt global supply chains, and signal a broader return to protectionist trade policies. The escalation raises fresh concerns over a renewed global trade war.

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