On November 13, 2025, the United States and South Korea issued a joint factsheet announcing the formalization of a series of trade-related negotiations. The announcement builds upon prior arrangements and reflects ongoing negotiations between the two countries’ leaders, including recent meetings and state visits. The announcement confirms the trade deal announced in July 2025, which set a 15% tariff rate for most South Korean imports, and also represents a comprehensive approach to the critical economic partnership between these two countries.
Under the formalized deal, the United States will apply a 15% tariff on most South Korean imports. This 15% rate will also apply to automobiles, auto parts, timber, lumber, and wood derivatives, which are generally subject to higher Section 232 tariffs following the conclusion of recent Section 232 investigations. Additionally, duties applicable to South Korean drugs under pending Section 232 investigations into pharmaceuticals will be capped at 15%. For semiconductors, which are also subject to an ongoing Section 232 investigation, the United States commits to match the terms of any future deals with countries whose semiconductor trade volumes are similar to South Korea’s.
Where the Korea-US Free Trade Agreement (“KORUS FTA”) or Most Favored Nation (“MFN”) tariff rates are equal to or greater than 15%, no additional Section 232 tariff will apply. If the KORUS FTA or MFN rate is less than 15%, the sum of the applicable tariff and the Section 232 tariff will be set at 15%. Additionally, the United States intends to remove tariffs on certain products, such as generic pharmaceuticals, ingredients, and natural resources not available domestically, in accordance with recent executive orders.
In turn, South Korea has agreed to ease restrictions on US car imports, including the elimination of a 50,000-unit cap on vehicles meeting US safety standards. Regulatory burdens for US automotive exports will be reduced, with South Korea not requiring additional documentation beyond US certification for emissions. The announcement also notes non-tariff barriers for food and agricultural products, streamlining regulatory approval processes, and establishing dedicated support for US horticultural exports, although more information would be necessary to confirm details.
The announcement also addresses ensuring that US companies are not subject to discriminatory laws or unnecessary barriers in digital services, facilitating cross-border data transfers, and addressing network usage fees and online platform regulations. In addition, South Korea has agreed to invest $350 billion in the United States, including $150 billion in the shipbuilding industry and $200 billion in other strategic sectors. These investments are accompanied by commitments to enhance commercial ties, promote reciprocal trade, and address non-tariff barriers. South Korea has also committed to providing additional procedural fairness in competition proceedings and continuing to take the necessary steps to accede to the Patent Law Treaty, among other issues.
