South Korea and U.S. seal $350B trade deal with tariff cuts on Korean cars

A historic $350B pledge reshapes Korea-U.S. trade ties. With tariffs on Korean cars already slashed, will both sides deliver on their promises?

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2025 December 12 . 11:45 PM

1 min read

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South Korea and U.S. seal $350B trade deal with tariff cuts on Korean cars

South Korea and the United States have finalised a major trade agreement worth $350 billion in investment pledges. The deal, reached in late October, includes tariff reductions in exchange for Korean concessions. Both sides are now working to implement the changes swiftly and fairly.

In early December 2025, the U.S. Trump administration officially posted a notice in the Federal Register. This notice confirmed the implementation of certain tariff elements from the updated Korea-U.S. trade deal. One key change is a reduced duty rate of 15 percent on Korean automobiles, applied retroactively from November 1.

The $350 billion investment pledge marks a significant step in Korea-U.S. trade relations. With tariff cuts already in effect for Korean cars, the next phase involves setting up the joint committee and addressing remaining trade barriers. The success of the deal will depend on how smoothly both nations implement the agreed terms in the coming months.