Report on Response Strategies to Korea-US and US-China Trade Negotiations
Samjong KPMG announced on November 12 that it had published a report analyzing the outcomes of the Korea-US and US-China trade negotiations held at the 2025 Asia-Pacific Economic Cooperation (APEC) Summit, including response strategies for Korean companies.
First, Korea and the United States agreed to lower tariffs on Korean-made automobiles from the current 25% to 15%. At the same time, for items that meet the rules of origin under the Korea-US Free Trade Agreement (FTA), a mutual tariff rate of 15% will be maintained. This measure is expected to promote trade between the two countries, particularly in the automobile and parts industries, and to ease cost burdens for Korean export manufacturers.
Additionally, the negotiations included a large-scale investment package totaling 350 billion dollars. Of this, 200 billion dollars will be in cash investments, while 150 billion dollars will be allocated to shipbuilding cooperation projects. To mitigate foreign exchange market volatility, the annual investment cap has been set at 20 billion dollars. The shipbuilding cooperation projects will be led by Korean companies, and long-term financing methods will be utilized for new ship construction.
Regarding this, Samjong KPMG evaluated, "It is significant that the investment structure ensures commercial rationality and establishes a stable framework by distributing profits equally (50:50) until principal and interest are repaid."
The United States and China, starting from November 10, agreed to lower tariffs on fentanyl-related items from 20% to 10%, and to extend the exemption from US Section 301 retaliatory tariffs until November 10 next year. China will suspend fees in the shipping, logistics, and shipbuilding sectors for one year, and will partially ease export controls on rare earths and restrictions on semiconductor trade. As a result, the semiconductor supply chain and raw material procurement conditions are expected to improve, and overall tensions in technology trade are likely to ease.
Samjong KPMG presented tariff optimization and risk management strategies that Korean companies should adopt in light of these agreements. Since "non-preferential origin" will be a key criterion for additional tariffs, the firm advised that companies should immediately re-determine origin when changing supply chains, and minimize legal uncertainty by seeking binding rulings from US Customs when necessary.
They also recommended actively utilizing the United States-Mexico-Canada Agreement (USMCA), as vehicles and parts that meet the agreement's requirements can benefit from tariff exemptions or reductions. To this end, it is important to establish systems for post-verification, including managing manufacturing processes, raw material prices, and origin data. In particular, when numerous components such as finished vehicles, battery cells, and modules are involved, US Customs may request related data, making thorough preparation essential.
Furthermore, with the restructuring of the automotive parts tariff system, steel and aluminum derivative products used in production or repair within the United States may be subject to a reduced tariff rate of 25% instead of the previous high rate of 50%, and 15% for Korean-made products. Relevant companies should therefore strengthen customs clearance and post-use certification procedures.
Kim Taejoo, Executive Director and Head of Customs and Trade Advisory at Samjong KPMG, stated, "The conclusion of the Korea-US and US-China trade negotiations has partially alleviated uncertainties surrounding US tariff policies," adding, "In particular, Korea's automobile, shipbuilding, and semiconductor industries will see enhanced competitiveness thanks to tariff reductions and expanded investment."
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