GlossaryEN2 min readUpdated: Jul 8, 2026

Trump Tariffs South Korea

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Last updated: 8 July 2026Published: 24 June 2026

Source: US-Korea „Strategic Trade and Investment Deal" (Joint Fact Sheet 14.11.2025; Federal Register 04.12.2025); Section-232-Autosenkung auf 15 % (wirksam 01.11.2025); südkoreanisches Sondergesetz zur staatlichen Investitionsgesellschaft (12.03.2026, 350 Mrd. USD); US Supreme Court, Learning Resources, Inc. v. Trump (20.02.2026, IEEPA-Aus); White & Case / Tax Foundation Tariff Tracker (Section 122 operativ 10 %, angekündigte 15-%-Anhebung nicht umgesetzt, Auslaufen ~24.07.2026). Stand: Juli 2026.

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Definition & Explanation

As of July 2026 — Goods exported from South Korea to the United States have been subject to a 15 percent reciprocal baseline tariff since 14 November 2025: the US applies the higher of the KORUS free-trade rate or the most-favored-nation (MFN) rate, or a flat 15 percent. The basis is the Korea Strategic Trade and Investment Deal (joint fact sheet of 14 November 2025, implemented in the US Federal Register on 4 December 2025), which formalized the framework announced in July 2025. Section 232 tariffs on automobiles and auto parts were cut from 25 to 15 percent effective 1 November 2025, calculated "inclusively" — where the KORUS/MFN rate is below 15 percent it is topped up to 15 percent. Pharmaceutical tariffs are likewise capped at 15 percent, and for semiconductors Washington promised "no less favorable" treatment. In return, South Korea pledged USD 350 billion in investment — USD 200 billion in strategic industries and USD 150 billion for US shipbuilding (MASGA, "Make American Shipbuilding Great Again"). On 12 March 2026 South Korea's parliament passed a special bill establishing a state-run investment corporation to manage the USD 350 billion package. The US Supreme Court struck down the IEEPA basis of the reciprocal tariff on 20 February 2026; since then the flat country rate has been carried by a temporary Section 122 surcharge (operatively 10 percent — the increase to the statutory maximum of 15 percent announced by President Trump on 21/22 February 2026 was never implemented by legal order; expiring around 24 July 2026), while the contractually negotiated 15 percent ceiling and the Section 232 auto reduction remain in force — so South Korea's effective all-in rate stays at 15 percent. Not to be confused with the Japanese or EU rate of likewise 15 percent, which rest on separate agreements. Related: Section 232, reciprocal tariffs, auto tariffs, IEEPA, Section 122, HTS.