The Trump administration has finalized a major trade agreement with South Korea, leading to a significant reduction in U.S. tariffs on imported goods, including automobiles. The new deal states that the general tariff rate on imports from South Korea will be cut from 25% down to 15%. This reduction was possible due to South Korea fulfilling a commitment within the trade structure by implementing a $350 billion investment package into select American industries.
The tariff reduction is set to deliver a substantial financial boost to South Korean auto manufacturers, most notably Hyundai and Kia, who have seen profits decrease because of the 25% tariffs. Recent forecasts predict the lower rate could save the companies billions, allowing them to improve their business operations.Furthermore, while the agreement softens financial strain to the South Korean economy, the required investment from South Korea into American industries strengthens the economic relationship between the two.
Source: https://www.cnbc.com/2025/12/03/trump-south-korea-tariffs-vehicles-hyundai-gm.html
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