U.S. agrees to lower tariffs on Korean Autos to 15%, presidential office says

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Published: 31 Jul. 2025, 08:16 Updated: 31 Jul. 2025, 08:52

YIM SEUNG-HYE
[email protected]

The logo of Korea's biggest automaker company Hyundai Motor is pictured at Pyeongtaek port in Pyeongtaek, Korea, April 15. [REUTERS/YONHAP]

The United States and Korea have finalized a trade agreement, setting the tariff rate on Korean auto exports to the country at 15 percent, the presidential office confirmed.

The agreement is timed to pre-empt a previously threatened 25 percent car tariff set to take effect on Aug. 1. Seoul dispatched senior trade negotiators and Hyundai Motor Group Executive Chair Euisun Chung to Washington to secure the outcome.

Major Korean automakers, such as Hyundai and Kia, had warned of steep export losses under a 25 percent duty, prompting Seoul to announce emergency support measures including financial aid, tax cuts and subsidies to cushion the industry's blow.

BY YIM SEUNG-HYE [[email protected]]