On December 4, 2025, the United States Trade Representative (USTR) published a notice in the Federal Register titled “Implementing Certain Tariff-Related Elements of the U.S. – Korea Strategic Trade and Investment Deal” which outlines tariff reductions in various areas.
Core Tariff Provisions
For originating goods from South Korea, the following reductions will apply based on the column 1-General or column 1-Special duty rate in the Harmonized Tariff Schedule of the United States. U.S. Customs and Border Protection (CBP) confirmed in their notice, the Special Program Indicator (SPI) “KR” must be present to make the duty determination using the Column 1 Special duty rate under the Korea Free Trade Agreement (KORUS).
- Reciprocal tariffs:
- If the Column 1 duty rate is less than 15%, the combined rate is 15%.
- If the Column 1 rate duty is greater than or equal to 15%, the reciprocal duty rate will be zero.
- Automobiles and parts:
- The combined duty rate will be 15% if their base rate is below 15%, while those at or above 15% incur no additional tariff.
- Section 232 tariffs:
- Tariff rates have been reduced to an all-inclusive 15% duty on automobiles, auto parts, timber, lumber, and related derivatives.
Exemptions
- Civil aircraft and related components are excluded from additional duties.
- Products subject to Section 232 tariffs (e.g., aluminum, steel, copper, timber) remain exempt from reciprocal tariffs under heading 9903.01.33.
Retroactive Effective Dates
- Effective November 1, 2025: These rates apply to automobiles and parts under Annex Part A.
- Effective November 14, 2025: These rates apply to country-specific reciprocal tariffs, timber, lumber, and their derivatives, and certain aircraft and aircraft parts under Annex Part B.
For additional information, refer to the Federal Register notice and CSMS notice issue by U.S. Customs and Border Protection below. Review Annex A and B for modifications to the Harmonized Tariff Schedule of the United States (HTSUS).
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