U.S. Secretary of Commerce Howard Lutnick speaks to the media previous to a gathering with European Commerce Ministers in Brussels, Belgium, Nov. 24. EPA-Yonhap
U.S. Commerce Secretary Howard Lutnick has confirmed that Washington’s 25 p.c tariffs on Korean autos have been lowered to fifteen p.c, efficient Nov. 1, beneath a bilateral commerce and funding deal.
The lowered tariff was a part of the 2 nations’ commerce deal finalized on Oct. 29 throughout a summit between President Lee Jae Myung and U.S. President Donald Trump within the southeastern metropolis of Gyeongju.
In a memorandum of understanding signed Nov. 14 on Korea’s pledge to speculate $350 billion within the U.S. beneath the deal, the 2 sides agreed to use the lowered tariff retroactively on the primary day of the month {that a} particular invoice facilitating the funding was launched on the Nationwide Meeting.
The invoice was launched by the ruling Democratic Celebration of Korea on Nov. 26.
“The Republic of Korea has formally moved to implement their strategic-investment laws in parliament,” Lutnick mentioned in a press release posted to his X account Monday (U.S. time). “In response, the U.S. will decrease sure tariffs beneath the deal — together with auto tariffs to fifteen p.c, efficient November 1. We’re additionally eradicating tariffs on airplane components and can ‘un-stack’ Korea’s reciprocal price to match Japan and the EU.”
Earlier, Business Minister Kim Jung-kwan despatched an official letter to Lutnick to tell him of the invoice’s submission and request the immediate publication of the retroactive utility of the decrease tariff within the U.S. Federal Register.
“Korea’s dedication to American funding strengthens our financial partnership and home jobs and trade,” Lutnick mentioned within the assertion. “We’re additionally grateful for the deep belief between our two nations. I look ahead to persevering with to work intently with Seoul to construct a fair stronger and extra affluent future for each nations.”
