"15% Tariff on Automobiles...
No Disadvantage for Semiconductors and Pharmaceuticals"
On July 30 (local time), U.S. Secretary of Commerce Howard Lutnick announced that the United States would take 90% of the profits generated from the $350 billion (approximately 487.55 trillion won) investment that Korea has agreed to make in the United States, under the condition of mutual tariff reductions.
On the same day, Secretary Lutnick stated on the social networking service X (formerly Twitter), following the announcement of the conclusion of the U.S.-Korea trade negotiations, "In accordance with the instructions of President Donald Trump, Korea has agreed to provide $350 billion to allow investment in the United States, and 90% of the profits will go to the American people."
This is the same rate that the United States previously applied in its trade agreement with Japan.
Secretary Lutnick said, "Today, we have reached yet another historic trade agreement," and announced, "Korea has agreed to purchase $100 billion worth of liquefied natural gas (LNG) and other energy products from the United States over the next three and a half years." He also added that when President Lee Jaemyung visits the White House in the coming weeks to meet with President Trump, Korean companies are expected to announce large-scale investments in the United States.
Regarding the tariff rates that will apply to Korea, he stated, "Mutual tariffs and automobile tariffs will be set at 15%, and Korea will not be treated less favorably than any other country in the fields of semiconductors and pharmaceuticals." These are similar conditions to those previously agreed upon with the European Union (EU) and Japan. Had this negotiation not been concluded, Korea would have faced a 25% tariff rate starting August 1. Automobile tariffs have been set at 25% since April 3.
However, Secretary Lutnick clarified, "Steel, aluminum, and copper are not included in this agreement, and existing conditions will remain in place."
Secretary Lutnick emphasized, "This trade agreement reflects a clear recognition that President Trump's tariff and trade policies can reshape the global commercial order," and added, "I am very proud to contribute to fulfilling our promise to the American people. Trade and tariffs are the way to Make America Great Again."
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