U.S. Reduces Tariffs on South Korean Automobiles and Auto Parts to 15%
2025-12-01
On November 26 local time, South Korea's ruling Democratic Party submitted the “Special Act on Management of Korea-U.S. Strategic Investment” to the National Assembly. The bill aims to implement the “Memorandum of Understanding on Strategic Investment” signed by South Korea and the United States on November 14, which includes establishing a Korea-U.S. Strategic Investment Fund and a management corporation. Previously, the two countries agreed that U.S. tariffs on South Korean automobiles, parts, and related products would be adjusted to 15% starting November 1. South Korea also committed to investing $150 billion in the U.S. shipbuilding sector, with an additional $200 billion in investments. In return, the U.S. clarified that it would not impose additional tariffs on South Korean exports to the U.S. with existing rates of 15% or higher, while raising rates below 15% to 15%. According to the Korea-U.S. consultation results, the 15% tariff will take effect on the first day of the month following Korea's submission of relevant legislation to the National Assembly.
