Retroactive US tariff cuts remove uncertainty for Korean exporters

SEOUL, December 04 (AJP) - The United States has retroactively reduced tariffs on South Korean automobiles to 15 percent effective Nov. 1, following recent trade negotiations, South Korea’s government said Thursday.

The two countries are working to ease related customs procedures for exporters, it added.

The U.S. Department of Commerce and the Office of the U.S. Trade Representative issued a pre-release of the Federal Register on Dec. 3, with formal publication scheduled for Dec. 4. The revised tariffs apply to passenger vehicles and auto parts, while tariffs on pickup trucks will remain at 25 percent under the rules of the Korea-U.S. Free Trade Agreement — unchanged from those applied to the EU and Japan.

Tariffs on mutual goods and wood products under Section 232, as well as aircraft and aircraft components, will also be applied retroactively to Nov. 14, the date the two countries signed a strategic investment memorandum of understanding. These items had been subject to an additional 15 percent duty since Aug. 7.

For products whose most-favored nation (MFN) tariff rate is below 15 percent, the total tariff burden will be harmonized at 15 percent from Nov. 14. Goods that qualify under the bilateral FTA will also be subject to a 15 percent tariff ceiling.

Wood products currently facing a 25 percent tariff will see duties lowered to 15 percent starting Jan. 1, while aircraft parts will become duty-free if they meet FTA requirements.

The U.S. Customs and Border Protection has circulated guidance on the updated Harmonized System (HS) codes and import procedures, requiring South Korean exporters to adjust their customs declarations accordingly.

In a statement, South Korea's Trade Minister Kim Jung-gwan said the tariff adjustments on major export categories — including automobiles, aircraft components and wood products — would “remove uncertainties” for South Korean exporters.

He added that the government would continue efforts to resolve customs-related challenges through advisory services and voucher support programs.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.

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