The US government has reduced the tariff rate on imports from South Korea to 15%, retroactive to November 1, 2025, following South Korea's approval of major investment commitments in the US, according to Commerce Secretary Howard Lutnick. The adjustment applies to multiple products, including automobiles.
According to Bloomberg, Reuters, and Nikkei Asia, this tariff reduction aligns South Korea's rates with those applied to Japan and the EU. The move is part of a reciprocal agreement after South Korea pledged to invest US$35 billion in US strategic sectors such as semiconductors and shipbuilding. South Korea's parliament ratified legislation last month to fulfill this commitment.
Strategic investments strengthen bilateral ties
Lutnick emphasized that these investments will boost US industrial competitiveness and reinforce both economic and security ties between the two countries. The recent trade deal also includes provisions to remove duties on aircraft parts from South Korea and adjust the reciprocal tariff system to US standards for its allies.
Technology sector protections secured
Both parties agreed to cap future tariffs on semiconductors or pharmaceuticals imposed for national security reasons at 15%, ensuring South Korea's competitive position alongside Japan and Taiwan in technology supply chains. Under the previous US administration, tariffs on South Korean imports reached up to 25% under Section 232 of the Trade Expansion Act of 1962 and the International Emergency Economic Powers Act (IEEPA) of 1977.
Legal uncertainty looms
The US Supreme Court's imminent review of the legality of IEEPA could potentially affect the continuation of tariffs imposed during the Trump administration, adding an element of uncertainty to future trade policy regarding South Korea and other countries.
Article edited by Jerry Chen
