Trump of the United States imposes 25% reciprocal tariffs on Korea. Yonhap News. 

The U.S. government confirmed on the 24th (local time) that the tariff rate on European automobiles and auto parts will be set at 15%.

This tariff rate will be applied retroactively from August 1st. This means that companies that paid tariffs higher than 15% after that date are eligible for refunds.

Following Japan's finalization of a 15% tariff rate on automobiles after concluding trade negotiations with the United States, and now with Europe also subject to a 15% tariff rate, South Korea, which is currently subject to a 25% tariff rate, is expected to face increased pressure to swiftly conclude negotiations with the United States.

The U.S. Department of Commerce and the Office of the United States Trade Representative (USTR) confirmed these tariff adjustments in the Federal Register, which was pre-released on this day ahead of its official publication on the 25th.

This includes the retroactive application of tariffs on imports of European automobiles from August 1st, lowering them from the current 27.5% to 15%.

However, this is conditional on the EU first enacting legislation to eliminate tariffs on U.S. manufactured goods and provide preferential market access for certain U.S. agricultural and fishery products.

The EU completed preparatory work for the reduction of automobile tariffs by announcing a draft legislative proposal on the 28th of last month.

The United States and the European Union (EU) announced a joint statement on trade agreements on the 21st of last month to apply a 15% tariff on European automobiles and auto parts, and U.S. President Donald Trump pledged to adjust reciprocal tariffs with the EU through an executive order on the 5th.

The announcement made today can be seen as a follow-up measure to this.

The contents announced today also specify provisions for tariff exemptions on certain pharmaceutical ingredients and aircraft parts, which will be applied from September 1st.

South Korea had agreed with the U.S. in July to lower automobile tariffs from 25% to 15%, but the 25% tariff remains in effect due to ongoing difficulties surrounding follow-up consultations on the tariff negotiations.

Yonhap News