Bangladesh, Jan. 27 -- US President Donald Trump has sharply escalated trade tensions with one of Washingtons closest Asian allies by announcing a sudden increase in tariffs on key South Korean exports, accusing Seoul of reneging on commitments under what he described as a “historic” trade and investment agreement. The move, unveiled on January 26 via Trumps Truth Social platform, raises duties on major South Korean products-including automobiles, lumber, and pharmaceuticals-from 15 percent to 25 percent, marking a significant reversal of the partial tariff relief granted last year.

The decision has sent shockwaves through financial markets and diplomatic circles, as it targets a strategic partner at a time of heightened geop...