United States Cuts Korean Auto, Aircraft, and Lumber Tariffs to 15% Retroactively
Updated (2 articles)
Tariff Reduction on Korean Automobiles Takes Effect Retroactively The United States lowered the duty on Korean cars and auto parts to 15 % from the previous 25 % rate, applying retroactively to shipments entered or withdrawn from warehouses on or after Nov. 1 2025[1][2]. The change was announced in a Federal Register notice posted on Dec. 3, ahead of its official publication on Dec. 4, allowing importers to adjust promptly[2]. This reduction is a core element of the Korea‑U.S. Strategic Trade and Investment Deal finalized at the October summit between Presidents Lee Jae‑Myung and Trump[2].
Reciprocal Tariff Cut Extends to Aircraft Components and Lumber The same 15 % rate now applies to Korean aircraft parts and related components, effective 12:01 a.m. on Nov. 14, aligning with the trade agreement’s schedule[1][2]. Timber, lumber, and derivatives also face the reduced 15 % duty from the same date, while Korean civil aircraft are exempt from reciprocal and sector‑specific tariffs on steel, aluminum, and copper under WTO rules[2]. Unmanned aircraft remain excluded from the aircraft‑part tariff reduction[2].
South Korea Commits $350 Billion Investment Linked to Tariff Relief In exchange for the tariff cuts, Seoul pledged a US$350 billion investment in the United States, formalized in a memorandum of understanding signed on Oct. 30[1]. Industry Minister Kim Jung‑kwan announced the reductions and pledged to address export‑process challenges such as customs clearance through consultations and tariff‑voucher programs[1]. The investment commitment underscores the strategic partnership emphasized in both articles[1][2].
Sources (2 articles)
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[1]
Yonhap: U.S. Lowers Tariffs on Korean Auto, Aircraft, and Lumber Exports: details tariff cuts across automobiles, aircraft parts, and lumber, highlights the $350 billion investment pledge and minister Kim Jung‑kwan’s statements on export‑process reforms.
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[2]
Yonhap: U.S. Implements 15 % Tariff on Korean Autos Retroactive to Nov. 1: focuses on the retroactive 15 % auto tariff, reciprocal rate, civil aircraft exemptions, and the pre‑publication Federal Register notice, noting the October summit context.
Timeline
Oct 2025 – Presidents Lee Jae‑Myung and Donald Trump meet in Seoul and finalize the Korea‑U.S. Strategic Trade and Investment Deal, setting the stage for reciprocal tariff cuts and a massive investment pledge. [2]
Oct 30, 2025 – South Korean officials sign a memorandum of understanding that commits US $350 billion of investment in the United States, a key condition for the forthcoming tariff reductions. [1]
Nov 1, 2025 – The United States implements a 15 % tariff on Korean automobiles and auto parts, applied retroactively to all shipments entered or withdrawn from warehouses on or after this date, replacing the previous 25 % rate. [1][2]
Nov 14, 2025 – At 12:01 a.m., the United States lowers tariffs on Korean timber, lumber, derivatives and selected aircraft components to 15 %, while exempting Korean civil aircraft from sector‑specific steel, aluminum and copper duties. [1][2]
Dec 3, 2025 – The U.S. Department of Commerce posts a Federal Register notice announcing the 15 % tariff regime and the reciprocal 15 % rate on Korean goods, giving importers advance notice before the official publication. [2]
Dec 3, 2025 – Industry Minister Kim Jung‑kwan announces the tariff reductions and pledges to address export‑process challenges such as customs clearance through consultations and tariff‑voucher programs. [1]
Dec 4, 2025 – The Federal Register officially publishes the notice, confirming the new tariff schedule and allowing importers to adjust to the reduced duties. [2]