FX.co ★ US Confirms South Korea's 15% Tariff Rate Retroactive to November 1

U.S. Commerce Secretary Howard Lutnick announced on Monday that the United States will reduce the general tariff rate on imports from South Korea, including automobiles, to 15%. This adjustment is retroactive to November 1 and follows South Korea's introduction of legislation to enact its strategic investment commitments in the U.S., according to a report by Reuters. In a statement on X, Lutnick expressed that this development unlocks the “full benefit” of South Korea's trade agreement made with President Donald Trump. In return, the U.S. will reduce certain tariffs under the agreement, notably lowering auto tariffs to 15% effective November 1. Additionally, tariffs on airplane parts will be eliminated, and South Korea's reciprocal tariff rates will be aligned to match those of Japan and the European Union. Previously, the U.S. had imposed a 25% tariff on imports from South Korea, which included duties on autos related to national security under Section 232 of the Trade Expansion Act of 1962 and "reciprocal" tariffs under the International Emergency Economic Powers Act of 1977.