The Donald Trump administration posted a notice on the Federal Register implementing tariff elements of the South Korea-U.S. trade deal. It reduces duties on Korean autos from 25% to 15%, retroactive to November 1. The move follows Seoul's pledge to invest $350 billion in the U.S.
The U.S. Department of Commerce and the Office of the U.S. Trade Representative posted a document on the Federal Register on Wednesday, December 3, 2025, implementing tariff-related elements of the Korea-U.S. Strategic Trade and Investment Deal. The official publication date is set for Thursday.
The notice stems from a trade deal finalized on October 29 during a summit in South Korea between President Lee Jae Myung and President Donald Trump. The two sides released a joint fact sheet on November 13 and signed a memorandum of understanding (MOU) for Seoul's investment the following day. South Korea pledged $350 billion in U.S. investments in exchange for tariff reductions. On November 26, South Korea's National Assembly tabled a special bill to support the investment commitment.
The notice confirms that Korean automobiles and auto parts entered for consumption or withdrawn from warehouse on or after 12:01 a.m. on November 1 (Washington time) are subject to a 15% tariff, down from the previous 25% sector-specific rate. Reciprocal tariffs on Korean goods are reduced to 15%, effective from November 14. Imports of timber, lumber, and derivatives face tariffs up to 15%, effective 12:01 a.m. on November 14, with duties on certain aircraft and parts also taking effect that day.
Korean products under the World Trade Organization Agreement on Trade in Civil Aircraft, except unmanned aircraft, are exempt from reciprocal tariffs, as are sector-specific tariffs on steel, aluminum, and copper.
The notice describes the deal as reflecting the 'strength' and 'endurance' of the U.S.-South Korea alliance. 'President Trump and President Lee declared a new chapter in the U.S.-ROK alliance, the linchpin for peace, security and prosperity on the Korean Peninsula and in the Indo-Pacific region,' it stated, referring to Trump's late October state visit to Korea. ROK stands for Republic of Korea.
Industry Minister Kim Jung-kwan said in a December 4 press release that it was 'fortunate' the U.S. finalized tariff reductions on major exports like autos, aircraft, and lumber, easing uncertainties for Korean exporters. He added that the ministry would address export challenges, such as customs clearance, through tariff consultations and voucher programs.
