Commerce secretary confirms lower U.S. tariffs on South Korean imports

On the Dash:

• The U.S. will lower tariffs on South Korean autos and other imports to 15%, retroactive to November 1.
• South Korea has pledged $350 billion in strategic investments in the U.S., triggering the tariff reduction.
• The trade deal caps future national security tariffs on semiconductors and pharmaceuticals at 15%, matching the rates of Japan and the EU.

Commerce Secretary Howard Lutnick confirmed Monday that the U.S. will reduce tariffs on South Korean imports, including automobiles, to 15%, retroactive to November 1. This follows South Korea’s legislation to implement its $350 billion investment commitments in strategic U.S. industries.

Lutnick said the adjustment allows American businesses and consumers to benefit fully from the trade deal negotiated under President Donald Trump. In a statement posted on X, he noted that tariffs on airplane parts will also be removed and that Korea’s reciprocal tariff rate will be aligned with those applied to Japan and the European Union.

Today we agreed to another historic trade deal. The Republic of Korea will provide $350 Billion for the United States to invest as President Trump directs, with 90% of the profits going to the American people. South Korea also agreed to purchase $100 Billion in LNG and other…

— Howard Lutnick (@howardlutnick) July 30, 2025

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The bilateral agreement also limits any future national security tariffs on semiconductors and pharmaceuticals at 15%, ensuring South Korea is on the same footing as major Asian trading partners like Japan and Taiwan. Previously, the U.S. had imposed a 25% tariff on imports from South Korea, including duties invoked under Section 232 of the Trade Expansion Act of 1962 and reciprocal tariffs applied under the International Emergency Economic Powers Act of 1977.

Lutnick also pointed to the potential Supreme Court decision that could overturn tariffs based on IEEPA, following doubts raised about their legal basis during early November oral arguments.

South Korea’s legislation fulfills its commitment to invest $350 billion in strategic U.S. industries, including shipbuilding, which Lutnick said strengthens economic ties and domestic jobs.