U.S. Raises Tariffs on Korean Ramen to 15%: Samyang Confirms Imminent Price Hikes

Tariff Deal Reached Between South Korea and the U.S.

South Korea and the United States have reached a new trade agreement that lowers reciprocal tariffs between the two nations from 25% to 15%. As part of the deal, South Korea has pledged to invest $350 billion (approximately 488 trillion KRW) in the United States.

However, not all sectors are seeing relief. In particular, Korean ramen exports are now facing a confirmed 15% U.S. import tariff, a notable increase from the previous 10%. This has prompted Korean food companies, especially those with significant export volume to the U.S., to consider raising prices.

Samyang to Raise Prices on Select Products in the U.S.

Samyang Foods, known for its globally popular “Buldak” spicy ramen, has announced it will be increasing the prices of certain products sold in the American market. The company noted that the higher tariffs have left it with little choice.

Samyang had already formed a dedicated task force to explore scenarios and mitigation strategies in anticipation of such changes. Following the conclusion of the tariff talks on July 31, the company began outlining a pricing strategy to offset the impact of the new import duties.

“We believe a price increase on select products is unavoidable,” a company spokesperson said. “Although we have yet to determine the exact price changes or which items will be affected, we are currently in discussions with major partners like Walmart, Costco, and H Mart.”

Flexible Response Strategies in Progress

Samyang is considering a tailored approach depending on product category and distribution channel. The company exports all its U.S.-bound products from its manufacturing facility in Miryang, Gyeongsangnam-do.

In 2023, Samyang Foods posted total revenues of KRW 1.728 trillion (approx. $1.26 billion), with overseas sales accounting for 77.3% of that figure. Its U.S. subsidiary alone contributed $280 million (about KRW 386.8 billion), representing 28% of total revenue.

To date, Samyang has attempted to absorb tariff-related costs through various means—optimizing production costs, diversifying export regions, streamlining logistics, and adjusting promotional expenses. However, the increase in tariff rates has made holding prices steady no longer viable.

Other Korean Brands Also Feeling the Pressure

Other Korean food companies with operations in the U.S. are also beginning to feel the ripple effects. Daesang Corporation, known for its Jongga kimchi brand, has started reviewing its own pricing strategy.

Daesang completed construction of a production facility in Los Angeles in 2022 and acquired local food manufacturer Lucky Foods in 2023 to boost its manufacturing capacity. However, since exports still account for a larger share of its U.S. sales than local production, the company remains exposed to the tariff hike.

A Daesang representative stated, “We’re discussing pricing adjustments by channel and product category with our U.S. partners. We’re also actively evaluating a potential expansion of our local manufacturing capabilities.”

Automotive Tariffs Lowered, but Investment Commitments Are High

While Korean food exporters face challenges, South Korean carmakers received positive news. Under the same trade deal, the tariff on Korean automobiles has been reduced from 25% to 15%, aligning with rates applied to Japanese vehicles.

Speaking to Axios on July 30, U.S. Secretary of Commerce Howard Lutnick confirmed that South Korea will follow through on its $350 billion investment pledge in line with directives from former President Donald Trump. He added that 90% of the returns from this fund will benefit the American public—a term previously agreed upon with Japan as well.

Massive LNG and Shipbuilding Investments Confirmed

On July 31, the South Korean presidential office confirmed that $150 billion of the pledged investment will be allocated to shipbuilding cooperation. Additionally, Secretary Lutnick revealed that South Korea has committed to purchasing $100 billion worth of liquefied natural gas (LNG) and other energy products from the U.S. over the next three and a half years.