Measures Following Korea's Submission of the Special Act on Investment in the U.S.
Expected to Be Published Soon in the U.S. Federal Register
Howard Lutnick, U.S. Secretary of Commerce, announced on December 1 (local time) that, in accordance with the trade agreement between South Korea and the United States, tariffs on South Korean automobiles would be retroactively reduced to 15% starting from November 1.
In a statement posted by the U.S. Department of Commerce on X (formerly Twitter) that day, Secretary Lutnick said, "South Korea has officially moved to implement the strategic investment legislation in its National Assembly," adding, "This critical step ensures that American industries and workers can fully benefit from President Donald Trump's trade agreement with South Korea." He continued, "Accordingly, the United States will lower certain tariffs in accordance with the agreement, including reducing automobile tariffs to 15% starting November 1."
Secretary Lutnick also stated, "We will also eliminate tariffs on aircraft parts and align country-specific tariffs on South Korea with those applied to Japan and the European Union."
Secretary Lutnick's statement follows the submission of the "Special Act on Strategic Investment Management between South Korea and the United States (Special Act on Investment in the U.S.)" by the ruling Democratic Party to the National Assembly on November 26. Under the "Memorandum of Understanding (MOU) on Strategic Investment between South Korea and the United States," signed on November 14, both countries agreed to retroactively apply tariff reductions from the first day of the month in which the legislation to implement the MOU is submitted to the South Korean National Assembly.
Since the submission of the Special Act on Investment in the U.S.-a prerequisite for the retroactive reduction of automobile tariffs-has been completed, Secretary Lutnick has now officially confirmed the reduction and retroactive application of automobile tariffs. Accordingly, the official legal process of publishing the tariff reduction in the U.S. Federal Register is expected to take place soon.
Previously, the Ministry of Trade, Industry and Energy stated that, on the day the bill was submitted, Minister Kim Jeonggwan sent a letter to Secretary Lutnick notifying him of the bill's submission to the National Assembly and requesting prompt publication in the Federal Register, including the retroactive application of the tariff reduction on automobiles and parts as of November 1.
Secretary Lutnick said, "South Korea's commitment to investment in the United States strengthens our economic partnership and supports jobs and industries in the U.S. We also appreciate the deep trust between our two countries," adding, "We look forward to continuing close cooperation with South Korea to create a stronger and more prosperous future for both nations."
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