Impact on Korean-Made Tractors and Related Exports
The administration of U.S. President Donald Trump implemented a measure imposing a 25% tariff on medium and large trucks and their parts, which took effect on the 1st (local time), according to AFP and other sources.
This measure, which was enacted along with a 10% import tariff on buses, was implemented following President Trump's directive to the U.S. Department of Commerce to conduct a so-called "Section 232 investigation" under the Trade Expansion Act of 1962, to examine the impact of imports of these goods on national security.
President Trump signed the proclamation ordering the imposition of these tariffs on the 17th of last month. Medium trucks are defined as vehicles with a gross weight between 14,001 and 26,000 pounds, and large trucks as those with a gross weight exceeding 26,001 pounds. The United States has already been imposing a 25% tariff on passenger cars and light trucks with a lower gross weight since April.
This tariff measure is expected to affect exports of Korean-made tractors and similar vehicles to the United States. According to the Korea Customs Service, as a result of this measure, tractors, trucks, ready-mix concrete vehicles, and other medium and large vehicles, as well as their parts, will now be subject to a 25% tariff, while buses will face a 10% tariff. Previously, these items were subject to a 15% reciprocal tariff on Korean-made goods.
Most of the trucks imported into the United States come from neighboring countries Mexico or Canada. In particular, more than 70% of large trucks imported into the U.S. are exported from Mexico, and about 20% are exported from Canada.
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