Trump amends Korea’s reciprocal tariff rate from 25% to 15% via executive order

Korea Economic Daily

Summary

President Trump announced he has lowered the reciprocal tariff rate on Korean products from 25% to 15%.
This executive order reflects the results of trade agreements, and Japan’s rate was also adjusted to 15%.
The revised tariff rate will apply to products imported starting seven days after the executive order is signed.

U.S. President Donald Trump lowered the reciprocal tariff rate on Korean products from the previous 25% to 15%, as agreed with South Korea.

On the 31st (local time), President Trump signed an executive order adjusting the country-specific reciprocal tariff rates announced previously, reflecting the outcome of trade negotiations with major trading partners such as South Korea. According to the country-specific tariff rates listed in the annex to this executive order, Korea is set at 15%. The reciprocal tariff rate for Korea, as first announced by President Trump on April 2, was 25%.

Japan's reciprocal tariff rate was also lowered to 15% in line with the terms of the trade agreement. However, products transshipped to avoid tariffs are subject to an additional 40% tariff on top of the country-specific reciprocal duty.

President Trump instructed that, in accordance with this executive order, the imported goods’ item code (HTSUS) should be revised, and stated that the updated order will apply to products imported seven days after the executive order is signed.

Hye-won Ahn, Hankyung.com reporter anhw@hankyung.com