White House: "U.S. to Lower Tariffs on Korean Autos to 15%... Semiconductors Not to Be Treated Less Favorably Than Competitors" (Update)

Mutual Trade Promotion Measures

Donald Trump, President of the United States. Photo by Yonhap News

On November 13 (local time), the White House announced that the United States would lower tariffs on South Korean automobiles, auto parts, logs, lumber, and wood-derived products to 15%.

The White House released a fact sheet containing details of the U.S.-Korea trade agreement. The agreement was reached on the occasion of the summit between President Lee Jaemyung and President Donald Trump in Gyeongju, North Gyeongsang Province.

In the area of reciprocal trade promotion, the United States decided to reduce tariffs imposed under Section 232 of the Trade Expansion Act on South Korean automobiles, auto parts, logs, lumber, and wood-derived products to 15%. However, the fact sheet did not specify when the current 25% tariffs on automobiles and auto parts would be reduced to 15%.

For pharmaceutical tariffs, which have not yet been announced by the U.S. government, tariffs on South Korean products will be capped at 15% or less.

Regarding semiconductor tariffs currently under review by the U.S. government, it was stipulated that South Korea would not receive less favorable treatment than countries with which the United States enters into future agreements. The comparison group is limited to countries whose semiconductor trade volume with the United States is equal to or greater than that of South Korea, with Taiwan expected to be included.

The United States also plans to eliminate reciprocal tariffs on generic pharmaceuticals, natural resources unavailable in the U.S., aircraft, and aircraft parts.

As previously explained by the government, South Korea will sign a memorandum of understanding (MOU) to invest 200 billion dollars in strategic investment sectors in the United States and 150 billion dollars in the shipbuilding industry. However, the annual investment under the MOU will not exceed 20 billion dollars.

Korean Air also announced the purchase of a total of 103 Boeing aircraft, amounting to 36 billion dollars.

The White House stated, "Both countries reaffirmed their joint goal of expanding trade and investment to promote mutual benefit," adding, "By the end of this year, the KORUS Joint Committee plans to adopt an implementation plan."

This content was produced with the assistance of AI translation services.