The U.S. government on the 3rd (local time) pre-posted in the Federal Register a notice retroactively lowering the tariff rate on Korean-made automobiles to 15%.
The National Archives and Records Administration the same day pre-posted the notice on the federal register website. The notice was posted under the names of the Office of the United States Trade Representative (USTR) and the International Trade Administration (ITA) of the Department of Commerce. The formal posting will take place on the 4th.
The notice states that the tariff rate applied to Korean-made passenger cars, light trucks, and automotive parts will be lowered to 15%. The reduced tariff will also be applied retroactively to goods exported for consumption or cars and auto parts withdrawn from warehouses for consumption after 12:01 a.m. (U.S. Eastern time) on the 1st of last month.
The retroactive measure follows the Democratic Party of Korea's introduction on the 26th of last month of the Special Act for Managing U.S.-Korea Strategic Investment (Special Act on Investment in the United States) in the National Assembly. In the memorandum of understanding (MOU) on U.S.-Korea strategic investment signed on the 14th of last month, the two countries agreed to apply the tariff cut retroactively as of the 1st day of the month when the bill to implement the MOU is submitted to Korea's National Assembly.
Howard Lutnick, the U.S. commerce secretary, said in a statement posted on social media platform X on the 1st of last month that "Korea has officially moved in the National Assembly to implement the strategic investment bill," and added, "The United States, under the agreement, plans to reduce certain tariffs, including setting auto tariffs at 15% starting Nov. 1."