United States and Korea announce trade deal framework

The White House on November 13, 2025, posted on its website a joint fact sheet describing President Trump's visit to South Korea on October 29, 2025, when President Trump and South Korea’s President Lee reaffirmed the announcement of the Korea Strategic Trade and Investment deal.

The framework of the trade agreements outlined in the fact sheet includes:

• The United States agreed to apply the higher of either the U.S.-Korea Free Trade Agreement (KORUS FTA) or Most Favored Nation (MFN) tariff rate, or a tariff rate of 15% on originating goods from South Korea under reciprocal tariff provisions.
• Regarding Section 232 tariffs:
  • The United States will reduce its sectoral tariffs to 15% on South Korean automobiles, auto parts, timber, lumber, and wood derivatives, with no additional tariffs applied for products with KORUS FTA or MFN rates equal to or greater than 15%. For products with lower rates, the combined tariff will total 15%.
  • For any Section 232 tariffs imposed on pharmaceuticals, the United States intends to apply to goods originating from Korea a Section 232 tariff rate no greater than 15%.
  • For any Section 232 tariffs imposed on semiconductors (including semiconductor manufacturing equipment), the United States intends to provide terms for such Section 232 tariffs on Korea that are no less favorable than terms that may be offered in a future agreement covering a volume of semiconductor trade at least as large as Korea’s, as determined by the United States.
• The United States plans to eliminate additional tariffs on specific products listed for Potential Tariff Adjustments for Aligned Partners. These products include generic pharmaceuticals, their ingredients and chemical precursors, and certain natural resources not available in the United States. Tariffs on certain Korean aircraft and parts will also be removed.
• To promote reciprocal trade:
  • South Korea will remove the 50,000-unit limit on U.S.-originating Federal Motor Vehicle Safety Standards (FMVSS)-compliant vehicles entering without modifications and simplify emissions certification for U.S. automotive exports.
  • Both countries will address non-tariff barriers in food and agriculture, streamline biotech product approvals, and maintain market access for U.S. meats and cheeses.
  • The United States and South Korea will work for fair treatment for U.S. digital services and support a moratorium on customs duties for electronic transmissions at the World Trade Organization (WTO).
  • Both countries will collaborate to protect intellectual property (IP) rights, with South Korea working toward joining the Patent Law Treaty.
  • The United States and South Korea will work for strong labor rights protection and combat forced labor globally.
  • South Korea will enforce environmental laws to prevent trade distortion and implement the WTO Agreement on Fisheries Subsidies.