The United States and South Korea have released further details on their updated trade framework, outlining how tariff reductions and new market access rules will be implemented. The joint fact sheet, published on Nov. 13, builds on the agreement the two countries announced earlier this year. Additional technical discussions are expected to take place in December.
Tariff Adjustments
Under the new structure, the U.S. will apply one of two rates to imports originating from South Korea — whichever is higher:
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The tariff rate under the U.S.–Korea Free Trade Agreement or the standard U.S. most-favored-nation rate, or
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A new reciprocal tariff rate of 15%.
The United States will also revise a number of Section 232 tariffs affecting Korean goods:
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Tariffs on automobiles, auto parts, timber, lumber, and wood-based goods will be reduced to a total of 15%.
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If a product already carries a tariff of 15% or more under KORUS or MFN rules, it will not face any additional Section 232 duties.
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Any future Section 232 tariffs on pharmaceuticals imported from Korea will be capped at 15%.
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In the event of new Section 232 tariffs on semiconductors or related machinery, Korea will receive no less favorable treatment than terms offered to other major semiconductor-trading partners.
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Supplemental reciprocal tariffs will be lifted on select Korean items, including generic pharmaceuticals, their chemical inputs, and certain natural resources not available domestically in the U.S.
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Additional reciprocal duties on Korean aircraft and aircraft parts will also be removed.
Commitments on Non-Tariff Barriers
South Korea agreed to a series of changes aimed at easing market access for U.S. industries:
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The long-standing cap limiting U.S.-built vehicles entering Korea without additional modifications will be eliminated. Vehicles meeting U.S. Federal Motor Vehicle Safety Standards will be accepted without further redesign.
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Korea will simplify emissions certification requirements by relying on documentation already submitted to U.S. regulatory authorities.
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Regulatory barriers for U.S. food and agricultural products will be addressed, including:
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Enforcement of existing bilateral commitments
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Faster approval and clearance of agricultural biotechnology products
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A dedicated review desk for U.S. horticultural exports
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Continued access for U.S. meat and dairy products that use specific labeling terms
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Korea also committed to ensuring fair treatment for U.S. digital service providers by avoiding discriminatory regulations and supporting the secure transfer of data for business uses such as insurance, logistics, and digital platforms.
Shared Economic and Security Goals
Both nations highlighted plans to strengthen their strategic cooperation. Areas of joint focus include:
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Eliminating goods linked to forced labor from global supply chains
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Enhancing enforcement to combat tariff evasion
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Coordinating responses to unfair or non-market practices
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Improving alignment on investment screening and outbound investment rules
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Ensuring that public procurement preferences align with partners who uphold similar commitments
The fact sheet underscores the broader goal: deepening economic and national security ties while reducing trade friction between the two countries.
