The reduction of South Korea's automobile tariffs to the U.S. to 15%, retroactively applied, was published in the U.S. Federal Register on the 3rd (local time).

This is a pre-publication through the online Federal Register, with official publication scheduled for the 4th.

The 15% U.S. tariff on South Korean automobiles, which takes effect on the official publication date of the 4th, will be applied retroactively as of 0:01 AM Eastern Time on the 1st of last month and will apply to automobiles and automobile parts imported for consumption or removed from warehouses for consumption.

This marks the tentative conclusion of the tariff, trade, and investment negotiations between South Korea and the U.S., which began in April, and the implementation phase of an agreement that includes South Korea's $350 billion (approximately 512 trillion won) investment in the U.S. and the U.S.'s tariff reduction on South Korean goods.

The reduction of country-specific tariffs (also known as reciprocal tariffs) on South Korea to 15% (down from 25%) was also included in the Federal Register.

Tariffs on aircraft and aircraft parts, and on raw timber, lumber, and wood products will also be retroactively reduced, effective as of 0:01 AM on the 14th of last month.

For aircraft and their parts, reciprocal tariffs and tariffs on steel, aluminum, and copper items will be exempted for products covered by the World Trade Organization's (WTO) Agreement on Trade in Civil Aircraft, excluding drones.

Item tariffs on raw timber, lumber, and wood products will be adjusted to a maximum of 15%.

The retroactively reduced tariff rates will be reflected by amending the Harmonized Tariff Schedule of the United States.

This retroactive tariff reduction is a follow-up measure to the "Joint Fact Sheet" (hereinafter referred to as "Fact Sheet") announced on the 13th of last month (14th Korean time) to implement the agreement reached during the South Korea-U.S. summit on October 29th in Gyeongju.

The Fact Sheet, which encompasses security and trade agreements, stipulated that in exchange for South Korea's $350 billion investment in the U.S., the U.S. would lower tariffs on South Korean automobiles and other goods, and support or approve South Korea's uranium enrichment, spent nuclear fuel reprocessing, and acquisition of nuclear-powered submarines.

In this regard, the "Memorandum of Understanding (MOU) on Strategic Investment between the Republic of Korea and the United States," signed by both countries on the 14th of last month, stipulated that tariff reduction measures would be applied retroactively from the 1st of the month in which the legislation to implement the MOU is submitted to the South Korean National Assembly.

Subsequently, the ruling Democratic Party proposed the "Special Act on the Management of Strategic Investments between Korea and the U.S." (Special Act on Investment in the U.S.) to the National Assembly on the 26th of last month, enabling the retroactive application.

The U.S. government stated in the Federal Register, "During the President's state visit to the United States, the Presidents of the United States and the Republic of Korea declared a new chapter in the Korea-U.S. alliance, a key link to peace, security, and prosperity on the Korean Peninsula and in the Indo-Pacific region."

Regarding the Joint Fact Sheet released as a result of the South Korea-U.S. summit, it was evaluated as "reaffirming the historic announcement of the July Korea Strategic Trade and Investment Agreement, reflecting the strength and durability of the Korea-U.S. alliance."

Cars lined up for export at Pyeongtaek Port in Gyeonggi Province. Yonhap NewsYonhap News