US Commerce chief confirms South Korea’s 15% tariff rate retroactive to November 1

By David Lawder

Dec 1 (Reuters) – U.S. Commerce Secretary Howard Lutnick on Monday confirmed that the general tariff ​rate on imports from South Korea, including on autos, would ‌drop to 15% retroactive to November 1 because South Korea has introduced legislation in parliament to ‌implement the country’s strategic U.S. investment commitments.

In a statement posted on X, Lutnick said that the move unlocks the “full benefit” of South Korea’s trade deal with President Donald Trump.

“In response, the U.S.⁠ will lower certain tariffs ‌under the deal — including auto tariffs — to 15%, effective November 1. We are ‍also removing tariffs on airplane parts and will ‘un-stack’ Korea’s reciprocal rate to match Japan and the EU.”

The bilateral trade deal also caps any future national security ​tariffs on semiconductors and pharmaceuticals at 15%, putting South Korea on ‌an equal footing with key Asian rivals Japan and Taiwan.

The U.S. previously levied a 25% tariff on imports from South Korea, including national security-related autos duties invoked under Section 232 of the Trade Expansion Act of 1962 and “reciprocal” tariffs invoked under the International Emergency Economic Powers Act of ⁠1977.

The U.S. Supreme Court could overturn ​the IEEPA-based tariffs in coming weeks after casting ​doubt on the legal basis of them during oral arguments in early November.

The South Korean ruling party’s legislation aims to make good ‍on Seoul’s agreement ⁠to invest $350 billion into strategic industries in the U.S., including shipbuilding.

“Korea’s commitment to American investment strengthens our economic ⁠partnership and domestic jobs and industry,” Lutnick said, adding that he was “grateful ‌for the deep trust between our two nations.”

(Reporting by ‌David Lawder; Editing by Lisa Shumaker)