U.S. Secretary of Commerce Howard Lutnick announced on the 1st (local time) that tariffs on Korean-made automobiles will be reduced to 15% in accordance with follow-up consultations on Korea-U.S. tariff negotiations. This reduction will be retroactively applied from the 1st of last month.

In a statement posted on the Commerce Department’s official X (formerly Twitter) account, Lutnick stated, “South Korea has taken official measures to implement the ‘Strategic Investment Act’ in its National Assembly,” adding, “U.S. industries and workers will fully benefit from the trade agreement between President Donald Trump and South Korea.”

He further explained, “The U.S. will reduce certain tariffs, including lowering automobile tariffs to 15% starting November 1st, in line with the agreement.” Lutnick also noted, “Tariffs on aircraft parts will be abolished, and reciprocal tariffs on South Korea will be aligned with those applied to Japan and the European Union (EU).”

The statement followed the proposal of the ‘Special Act on the Management of Korea-U.S. Strategic Investment’ (Special Act on Investment in the U.S.) in the National Assembly on the 26th of last month.

The two countries signed a memorandum of understanding (MOU) on strategic investments worth 350 billion U.S. dollars on the 14th of last month, agreeing that the reduction of automobile and parts tariffs would take effect from the 1st of the month in which the legislation to implement the MOU is submitted to the South Korean National Assembly.

On the day the bill was proposed, the Ministry of Trade, Industry and Resources sent a letter signed by Minister Kim Jung-kwan to Lutnick, informing him of the bill’s proposal and requesting prompt publication in the Federal Register regarding the retroactive application of tariff reductions for automobiles and parts from November 1st.

Source: Chosun