Overview
- Commerce Secretary Howard Lutnick confirmed the general rate on Korean imports, including autos, drops to 15% effective Nov. 1.
- The United States will remove tariffs on airplane parts and will un-stack Korea’s reciprocal rate to match Japan and the European Union.
- The step follows the formal introduction of legislation in Korea to deliver $350 billion in U.S.-focused investments targeting strategic industries.
- The bilateral deal caps any future national-security tariffs on semiconductors and pharmaceuticals at 15%, aligning Korea’s treatment with Japan and Taiwan.
- Previous duties had been 25% under Section 232 and IEEPA, and a pending Supreme Court decision could affect the legality of IEEPA-based tariffs.