The U.S. will impose 25% tariffs on Canadian and Mexican goods starting Wednesday, following a month-long delay. President Donald Trump justified the move as necessary to address cross-border drug trafficking, despite sharp criticism from Ottawa and Mexico City. In retaliation, Canada announced $155 billion in countertariffs, with an initial $30 billion in duties taking effect immediately and the remainder to follow within 21 days.

South Korean businesses with operations in Canada and Mexico will face higher costs and trade uncertainty, given their deep integration into North American supply chains. In 2023, South Korea’s trade with Canada and Mexico totaled $34.4 billion, and major firms such as Samsung, Hyundai, LG and Kia operate over 200 subsidiaries in the two countries. Tariffs could erode the price competitiveness of South Korean-made vehicles, batteries and home appliances exported from Mexico to the U.S.