Listeners, here’s the latest update on US-South Korea tariffs as of November 19, 2025. After months of negotiation, the United States and South Korea have finalized a landmark agreement, putting an end to years of tariff disputes. According to Global Trade Alert, the US Administration issued an executive order this summer reducing reciprocal tariffs for imports from South Korea from 25% to a flat 15%. This rate officially took effect on August 7 and has now become the baseline for US-South Korea tariff policy moving forward. Sectoral tariffs, especially those impacting automobiles, auto parts, timber, lumber, and wood products, have also been reduced to 15%. These changes were reaffirmed by a White House factsheet released on November 13, which guarantees Korea will not face higher tariffs than other major trading partners on crucial sectors like semiconductors and pharmaceuticals.

Koreajoongang Daily reports this agreement comes with major investments on both sides. South Korea has committed up to $350 billion in US investment over the next decade, focused on shipbuilding, semiconductors, nuclear power, secondary batteries, and biotech. This includes a cash injection of $200 billion over ten years plus an additional $150 billion in shipbuilding. In return, Washington will maintain its reduced 15% tariffs and also pledged to remove supplemental tariffs on selected Korean aircraft, pharmaceutical inputs, and some natural resources.

The National Law Review highlights that the agreement doesn't just tackle tariffs—South Korea will also lower non-tariff barriers for US imports, dropping its previous cap on US vehicles and easing regulations for US agricultural products and digital trade. South Korea has also promised to boost defense spending to 3.5% of GDP and purchase at least $25 billion in US military equipment, strengthening both economic and security ties between the countries.

Industry sources like RV Business and the RV Industry Association further clarify that the United States will remove reciprocal tariffs for key South Korean goods listed in Annex III, including certain aircraft and parts, paving the way for broader US-South Korea trade in strategic sectors. Additionally, South Korea has pledged to buy $100 billion in US energy products, ensuring a steady demand for American exports.

Listeners, these tariff updates signal a significant thaw in US-Korea trade relations under the Trump administration, especially at a time when global supply chains and strategic investments are more important than ever. For South Korean exporters, especially in autos, electronics, and pharmaceuticals, reduced tariffs represent a major opportunity. For American companies, new market access and investment commitments from Seoul could mean billions in new business.

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