Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to. We, of course, expect our Trading Partners to do the same.
South Korea’s Legislature is not living up to its Deal with the United States. President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn’t the Korean Legislature approved it?
Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%. Thank you for your attention to this matter!
DONALD J. TRUMP
PRESIDENT OF THE UNITED STATES OF AMERICA
This Trump statement is directly trade-war oriented and will impact autos, industrial metals, currencies, and safe-haven commodities (Gold & Silver).
Let’s break it cleanly 👇
🔴 DIRECTLY AFFECTED SECTORS & COMMODITIES
🚗 1️⃣ Automobiles & Auto Metals (Most Impacted)
South Korea major exports to USA:
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Hyundai
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Kia
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Auto parts
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EV batteries
Impact on commodities:
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🔻 Copper (used in EVs, wiring)
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🔻 Aluminum
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🔻 Steel
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🔻 Nickel & Lithium (EV batteries)
📉 Auto production slows → metal demand slows → volatility in:
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COMEX Copper
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LME Aluminum
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MCX Base Metals
🏥 2️⃣ Pharma Sector
Tariffs on Korean pharma exports:
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Raises drug prices in US
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Hurts Korean exporters
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Pushes inflation risk
➡️ Inflation fear = bullish for Gold & Silver
🌲 3️⃣ Lumber / Wood
Tariffs on lumber:
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Push construction cost higher
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Adds to inflation
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Hurts housing & manufacturing
Again → inflation + uncertainty = Gold positive
🟡 SAFE HAVEN WINNERS
🥇 GOLD (Strong Positive)
Reasons:
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Trade war tension
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Tariff escalation
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Risk-off sentiment
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Inflation pressure
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USD volatility
📈 Expect:
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COMEX Gold bullish
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MCX Gold bullish
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ETF inflows increase
🥈 SILVER (Even stronger)
Silver benefits from:
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Safe haven demand
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Industrial supply disruption (electronics, EVs)
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Korea is major tech exporter (chips, batteries)
📈 Dual benefit:
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Crisis hedge + industrial squeeze
🔵 CURRENCY & INDEX EFFECT
🇰🇷 Korean Won (KRW)
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🔻 Weakens due to export pressure
🇺🇸 US Dollar
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Short-term strong
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Long-term inflation risk weakens USD
📉 Stock Markets
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Korean stocks: negative
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US auto & pharma stocks: volatile
🟠 SECONDARY EFFECTS (Chain Reaction)
If Korea retaliates:
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Global trade war expands
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China may support Korea
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Supply chain disruption
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Shipping & logistics costs rise
Which benefits:
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Gold
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Silver
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Copper volatility
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Crude oil uncertainty
📊 MOST AFFECTED SCRIPTS (Your Trading Focus)
Commodities:
✅ Gold
✅ Silver
⚠️ Copper
⚠️ Aluminum
⚠️ Nickel
⚠️ Zinc
⚠️ Steel
Equity sectors:
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Auto stocks
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Pharma stocks
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EV battery companies
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Logistics
🧠 MARKET PSYCHOLOGY
This statement signals:
“Trump is restarting aggressive tariff warfare”
Markets will read it as:
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Political risk ↑
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Economic uncertainty ↑
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Inflation pressure ↑
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Capital flows into bullion ↑
🎯 SUMMARY (One Line)
This tariff hike on South Korea is bullish for Gold & Silver, bearish for auto metals and industrial commodities like Copper & Aluminum, and negative for Korean exports and global risk assets.
