South Korean Cars Likely to be Exempted from U.S. Tariffs

Economic issues related to the KORUS FTA and the automobile sector drew much attention during U.S. President Donald Trump’s recent visit to South Korea. He suggested that negotiations for fair trade promotion will be going on with agricultural products, medicines and automobiles included.

U.S. President Donald Trump positively evaluated the new KORUS FTA at his meeting with South Korean enterprises held on June 30 at the Grand Hyatt Seoul. “The new KORUS FTA that became effective this year is beneficial to both sides,” he said, adding, “The agreement is reciprocal in various sectors such as agricultural product, medicine and automobile and the U.S. and South Korean governments will continue to work on fair trade promotion down the road.”

The president of the United States also hinted that the U.S. government’s punitive tariffs may not be applied to South Korean automakers. “The United States and South Korea have continuously strengthened their economic alliance and I speak highly of that, which may be applied to South Korean automakers,” he went on to say.

Earlier, the president of the United States said in May this year that he postponed his decision on tariffs on automobiles and auto parts imported from the European Union, Japan and some other countries by 180 days. At that time, he mentioned nothing about South Korean cars.