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South Korean Equities Ignore Trump Tariff Threats

ADMIN || 27th January 2026

The Kospi opened only modestly lower today following President Trump’s tariff threats, with the Korean won bearing more of the brunt. That may partly be because the sectors targeted, even autos, mean much less to South Korea’s benchmark gauge than do tech giants, but it also underscores investors’ awareness that Trump rarely follows through fully on such pronouncements.

Study shows that Trump made 49 tariff threats or new trade investigations between November 2024 election and Jan. 25, 2026, out of which Trump actually executed only 27%. This includes temporary escalations with China in April and May that was eventually rolled back. The share of tariffs that were implemented and stayed in place is lower at around 20%. Another 22% of threats are associated with ongoing trade investigations led by the Department of Commerce and US Trade Representative.

Given a 20% hit rate of tariffs that were actually implemented, Seoul’s traders will be primed to buy any dips created by the latest social media post from Trump, a theme that’s enhanced by the lack of any definitive order to put the new levies into effect.

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