Uncertainties surrounding South Korea's exports have partially eased as the United States confirmed the lowering of tariffs on Korean automobile, aircraft and lumber imports on the Federal Register, Seoul Industry Minister Kim Jung-kwan said Thursday.
"It is fortunate that the US administration has finalized tariff reductions on our major export items, such as automobiles and auto parts, aircraft and aircraft components, and lumber products, which are our largest export categories to the US," Kim said in a press release, noting the measure removes uncertainty for Korean exporters.
"We will actively make efforts to resolve difficulties faced by companies in the export process, such as customs clearance issues, through consultations on tariff response and tariff-voucher programs," he added.
Kim's remarks came just a few hours after the administration of US President Donald Trump posted on the Federal Register a notice implementing certain tariff elements of a Korea-US trade deal, including a reduced duty rate of 15 percent on Korean cars retroactive on Nov. 1.
The Department of Commerce and the Office of the US Trade Representative posted the document to implement tariff-related elements of the Korea-US Strategic Trade and Investment Deal ahead of its official publication date set for Thursday.
The notice affirmed that Korean automobiles and auto parts -- entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. on Nov. 1 -- are subject to a 15 percent tariff, down from the sector-specific rate of 25 percent. The reduced rate is effective Nov. 1.
It also spelled out a reduced "reciprocal" tariff rate of 15 percent on Korean products.
Imports of timber, lumber and their derivatives are subject to tariffs of up to 15 percent, effective 12:01 a.m. on Nov. 14. Duties on certain aircraft and aircraft parts also went into effect the same day.
Korean products, which fall under the World Trade Organization Agreement on trade in civil aircraft, except for unmanned aircraft, will not be subject to reciprocal tariffs and sector-specific tariffs on steel, aluminum and copper, according to the notice.
The elements were decided in the trade deal finalized between the two countries on Oct. 29, under which Seoul made a $350 billion investment commitment to the US in exchange for tariff cuts.
The two sides released a joint fact sheet on the deal on Nov. 13 and signed a memorandum of understanding for Seoul's investment in the US the following day. (Yonhap)
