The US will cut Korea (Rep.) auto tariffs to 15%, retroactive to 1 November 1 under a recent trade agreement.
The US will reduce import duties on Korea (Rep.) automobiles to 15%, retroactive to 1 November, aligning with the tariffs applied to Japan and the EU, Commerce Secretary Howard Lutnick announced on 2 December 2025.
The measure follows last month’s trade agreement and Korea (Rep.) introduction of legislation to fulfil investment commitments to the US.
Earlier, the US and Korea (Rep.) signed a major trade agreement on 29 October 2025.
As per the deal, the US will cut auto tariffs on Korea (Rep.) imports from 25% to 15% in exchange for Korea (Rep.)’s USD 350 billion investment in the US, including USD 200 billion in cash and USD 150 billion in shipbuilding projects. To manage the economic impact, the investments will be capped at USD 20 billion annually, with profits to be shared between the two countries.
