US-South Korea Trade Deal Sees Tariff Reduction on Cars, Other Sectors Unchanged
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Seoul, South Korea – A recently concluded trade agreement between the United states and South Korea will reduce tariffs on South Korean automobiles, while other key sectors like semiconductors and drugs will maintain existing tariff rates. The deal also leaves tariffs on steel, aluminum, and copper unchanged, and outlines South Korea’s energy purchases over the next three and a half years.
key Provisions of the Agreement
the South Korean Presidential Office announced that the trade agreement with the U.S. will lower the tariff rate on south Korean cars from 25% to 15%. This adjustment is a significant advancement for the automotive sector involved in the bilateral trade.
In sensitive areas such as rice and beef, the agreement will not expand market access to the United States, according to Kim Yong-Hong-Hon-kun, head of the presidential office’s policy office. This indicates a continued protection of these specific agricultural markets.
Conversely,U.S. President Donald trump and U.S. officials have stated that non-tariff barriers for agricultural products will be eliminated. Trump further asserted that South Korea will grant tariff-free access to U.S. products, including cars, trucks, and agricultural goods.
The agreement also incorporates existing investment plans by Korean companies into an investment fund. Specific safety measures for the utilization of these funds have been established.
uncertainties and Future Announcements
Details regarding the investment contract’s structure, the funding provider, the investment duration, and the agreement’s binding nature remain undisclosed at this time. President Trump indicated that further South Korean investments will be announced at a later date.
Regarding other trade aspects, it was emphasized that South Korea’s semiconductor and drug sectors will not face stricter regulations than those applied in other countries.Furthermore, steel, aluminum, and copper products are not included in the new agreement, meaning their existing tariff rates will persist.