White House Provides More Information On Trade Deal With South Korea

As Supply Chain Dive reported, last week the U.S. and South Korean governments formalized a trade agreement that cements a 15 percent tariff rate for products imported into the United States from South Korea and reaffirms several provisions of a deal that the countries first struck in July 2025.

According to a White House fact sheet, in addition to the reduction of reciprocal tariffs to 15 percent, the agreement calls for:

• The U.S. government to reduce to 15 percent sectoral Section 232 tariffs on South Korean automobiles, auto parts, timber, lumber, and wood derivatives. No additional tariffs will be applied for products that enjoy Korea-United States free trade agreement or most-favored nation rates that are equal to or greater than 15 percent. For products with lower rates, the combined tariff will total 15 percent.
• For any Section 232 pharmaceutical tariffs, the United States will apply a Section 232 tariff rate no greater than 15 percent.
• For any Section 232 tariffs imposed on semiconductors, including semiconductor manufacturing equipment, the U.S. government will provide terms for such tariffs that are no less favorable than terms that may be offered in a future agreement covering a volume of semiconductor trade at least as large as South Korea’s, as determined by the United States.
• The U.S. government will eliminate additional tariffs on specific products listed for Potential Tariff Adjustments for Aligned Partners. These products include generic pharmaceuticals, their ingredients and chemical precursors, and certain natural resources not available in the United States.
• The U.S. government will remove tariffs on certain South Korean aircraft and parts.
• To promote reciprocal trade, the South Korean government will remove its 50,000-unit limit on U.S.-originating Federal Motor Vehicle Safety Standards-compliant vehicles entering without modifications and simplify emissions certification for U.S. automotive exports.
• The South Korean government will enforce environmental laws to prevent trade distortion and implement the World Trade Organization (WTO) Agreement on Fisheries Subsidies.

Additionally, both countries have pledged to:

• Address non-tariff barriers in food and agriculture, streamline biotech product approvals, and maintain market access for U.S. meats and cheeses.
• Work for fair treatment for U.S. digital services and support a moratorium on customs duties for electronic transmissions at the WTO.
• Collaborate to protect intellectual property rights, with South Korea working toward joining the Patent Law Treaty.
• Work for strong labor rights protection and combat forced labor globally.

Read more at this link.