2025-21940Notice

U.S. Tweaks Tariffs on Korean Cars, Planes in Trade Deal

Published Date: 12/4/2025

Notice

Summary

The U.S. and South Korea are teaming up to adjust tariffs on cars, timber, aircraft, and more to boost trade and strengthen their alliance. These changes start November 1 and November 14, 2025, making it easier and cheaper to trade certain goods between the two countries. Businesses dealing with these products should get ready for smoother, friendlier trade rules that could save money and speed up shipments.

Analyzed Economic Effects

6 provisions identified: 3 benefits, 3 costs, 0 mixed.

15% Tariff Floor for Korean Cars

If you import passenger vehicles or light trucks that are products of South Korea, the rule makes the total U.S. duty equal to 15% when the applicable Column 1 duty rate is less than 15%. This rule for automobiles and automobile parts is effective for goods entered for consumption on or after 12:01 a.m. eastern time on November 1, 2025.

Civil Aircraft and Parts Exempted From Added Tariffs

Civil aircraft (all aircraft other than military and unmanned), their engines, parts, components, subassemblies, and ground flight simulators that are products of South Korea are not subject to the additional duties imposed under Executive Order 14257 and the listed proclamations. That exclusion is reflected in new heading 9903.02.81 and applies to goods entered for consumption on or after 12:01 a.m. eastern time on November 14, 2025.

No Extra Duty When Duty ≥ 15%

If you import passenger vehicles, light trucks, or parts of South Korea that already have a Column 1 duty rate of at least 15%, the additional ad valorem duty described in the U.S.-ROK Deal will be zero. This treatment for automobiles and automobile parts is effective for goods entered for consumption on or after 12:01 a.m. eastern time on November 1, 2025.

Auto Entries Exempt From Other Added Duties

Entries of the passenger vehicles, light trucks, and automotive parts described in the notice will not be subject to certain additional duties on copper, aluminum, iron or steel, derivative metal products, and several wood-product additional-duty headings. That exclusion is specified in the new U.S. note subdivisions and headings and applies to the automobile measures effective November 1, 2025.

15% Duty for Korean Timber and Wood Products

For timber, lumber, and derivative wood products that are products of South Korea, the sum of the Column 1 duty rate and any additional ad valorem duty under Proclamation 10976 will be 15% when the Column 1 rate is less than 15%; if the Column 1 rate is at least 15% no additional duty applies. The new heading 9903.76.23 sets a 15% duty for specified wood products effective for goods entered for consumption on or after 12:01 a.m. eastern time on November 14, 2025.

Full-Value Assessment for Certain Chapter 98 Entries

For goods entered under a provision of chapter 98 that are subject to the additional duties in this notice, duties under subheading 9802.00.60 will be assessed based on the full value of the imported article. The notice states this assessment rule in the HTSUS amendments for the affected automobile, parts, timber, and other provisions.

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Key Dates

Published Date
12/4/2025

Department and Agencies

Department
Independent Agency
Agency
Trade Representative, Office of United States
Commerce Department
International Trade Administration
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