South Korean stock market fell in early trading as Trump threatens to increase tariffs on South Korean goods.

The South Korean stock market Kospi fell more than 1% in early trading, after U.S. President Trump threatened to increase tariffs on South Korean goods from 15% to 25%. Trump stated that due to the South Korean parliament not yet passing a trade agreement with the United States, tariffs on South Korean cars, wood, drugs, and all other equivalent tariffs will increase from 15% to 25%. Samsung Electronics and Hyundai Motor are dragging down the Kospi index the most. The benchmark stock index in South Korea has still risen by 16% so far this year. Gary Tan, portfolio manager at Allspring Global Investments, stated that Trump's tariff threat could put greater pressure on South Korea's non-semiconductor industries, such as automobiles and consumer goods, potentially triggering short-term profit-taking after recent strong gains. "We believe this is more of a negotiating strategy to speed up South Korea's investment in the United States. The United States sees South Korea as a long-term strategic partner in Asia."