US President Donald Trump has announced a sharp increase in tariffs on various South Korean goods to 25% today. He cited South Korea "not living up to" an earlier trade pact as the primary reason for the move. This decision has sparked immediate concern across Asian markets, particularly in the electronics and automotive sectors.

The move is seen as part of a broader strategy to pressure trade partners into more favorable terms for the United States. South Korean officials have expressed deep regret and are considering retaliatory measures or an appeal to the World Trade Organization. The sudden nature of the hike has caused a dip in regional stock indices this morning.

Global supply chains are braced for disruption, as South Korea is a key supplier of semiconductors and high-tech components. Analysts warn that this could lead to increased prices for consumer electronics in the US. The White House, however, maintains that these measures are necessary to protect American jobs and industries.