How Much Have Tariffs Risen?

A summary of the sharp rise in tariff rates among major countries caused by U.S.-led reciprocal tariffs and sectoral tariffs in 2025, the background, and the impact on South Korea.

How Much Have Tariffs Risen?

Overview

In 2025, as the U.S. Trump administration successively announced "reciprocal tariffs" and sectoral tariffs, the global average tariff rate rose at its fastest pace in decades. The 10% universal baseline tariff and country-specific reciprocal tariffs (up to 50%) announced in April 2025 shook the world trade order, and South Korea, after being included among countries subject to a 25% tariff, had it adjusted to 15% through negotiations. This document summarizes how much tariff rates actually rose and which rates apply to which products and countries.

Key Details

1. Background of the Tariff Increases

President Trump, who took office in January 2025, weaponized tariffs under the pretext of reducing the trade deficit, bringing manufacturing back, and securing fiscal revenue. The legal bases invoked included Section 232 of the Trade Expansion Act (national security), the International Emergency Economic Powers Act (IEEPA), and Section 301 of the Trade Act. Analyses indicated that the U.S. effective tariff rate, which had previously averaged around 2-3%, jumped to the 15-18% range in mid-2025.

2. Country-Specific Reciprocal Tariff Rates (as Announced in April 2025)

China: an additional 34% → later escalated to 125%, eased to around 30% after negotiations
Vietnam: 46%
Taiwan: 32%
India: 26%
South Korea: 25% → 15% after negotiations
Japan: 24% → 15% after negotiations
EU: 20% → 15% after negotiations
Thailand: 36%, Cambodia: 49%, Switzerland: 31%
Universal baseline tariff: 10% on all trading partners

3. Sectoral Tariffs

Steel and aluminum: 25% → raised to 50% in June 2025
Automobiles and parts: 25%
Semiconductors and pharmaceuticals: under consideration for high tariffs after a Section 232 investigation (up to 100% mentioned)
Copper: 50% announced
Timber and furniture: phased application of 10-25%

4. Impact on South Korea

In late July 2025, South Korea agreed through U.S.-Korea negotiations to lower the reciprocal tariff from 25% to 15%. In return, a $350 billion package of investment in the United States and expanded energy purchases were cited as conditions. Major export items such as automobiles, steel, and semiconductors remain directly affected by high Section 232 tariffs, and with the weak won and pressure on export unit prices overlapping, concerns arose over deteriorating profitability among small and medium-sized supplier companies.

5. Controversy over the Tariff Calculation Method

The "reciprocal tariff" formula proposed by the United States divided a counterpart country's trade surplus with the United States by its imports and then halved the result, drawing criticism that it was unrelated to the counterpart country's actual tariff rate. A representative analysis, for example, found that halving the result of dividing South Korea's roughly $66 billion surplus with the United States by $130 billion in imports produced 25%.

Recent Developments

In the second half of 2025, the United States concluded framework negotiations with major countries one after another, showing a trend toward converging rates around 15%. However, separate high tariffs have been announced for strategic items such as semiconductors and pharmaceuticals, so uncertainty remains. With China, it is negotiating while extending tariff suspensions in 90-day increments, while the EU, Japan, and South Korea are in a structure where they are granted exceptions on condition of fulfilling investment and purchase commitments. The weakening of the WTO system, supply chain restructuring (nearshoring and friendshoring), and inflationary pressure in the United States are cited as key variables for 2025-2026. Countries are responding with retaliatory tariffs, export diversification, and strengthened trade negotiating power.