The second Trump administration in the United States has retroactively reduced tariffs on Korean-made cars exported to the U.S. from the previous 25% to 15% starting from the 1st of last month, as published in the U.S. Federal Register on the 3rd (local time). On the 1st, U.S. Secretary of Commerce Howard Lutnick officially announced, "In accordance with the trade agreement with Korea, tariffs on Korean-made cars will be retroactively reduced to 15%." This is interpreted as a follow-up measure to that announcement.

This register was posted under the names of the U.S. Department of Commerce's International Trade Administration (ITA) and the Office of the United States Trade Representative (USTR). As mentioned by Secretary Lutnick, it includes the reduction of tariff rates to 15% applied to Korean passenger cars, light trucks, and vehicle parts. Notably, the 15% tariff will also be retroactively applied to Korean goods imported for consumption in the U.S. after the 1st of last month.

This retroactive reduction follows the ruling Democratic Party's proposal of a special bill for strategic investment management between Korea and the U.S. (Special Act on U.S. Investment) in the National Assembly on the 26th of last month. In the Memorandum of Understanding (MOU) on Strategic Investment between Korea and the U.S. signed on the 14th of last month, both countries agreed to retroactively apply the tariff reduction to the 1st of the month in which the bill for implementing the MOU is submitted to the Korean National Assembly. As the proposal of the Special Act on U.S. Investment, which was a condition for the retroactive reduction of car tariffs, has been made, the second Trump administration has officially confirmed the reduction and retroactive application of car tariffs.

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