Synopsis
On March 5, the South Korean government reaffirmed that the average tariff rate on US imports is below 1% under the bilateral FTA, with further reductions scheduled for this year, amidst claims from US President Trump regarding unfair tariff disparities.Key Takeaways
- South Korea's average tariff on US imports is under 1%.
- Current tariff rate is 0.79% as of last year.
- Plans for further tariff reductions this year.
- Trump's claims of higher tariffs are disputed.
- The majority of US exports to South Korea enjoy tariff exemptions.
Seoul, March 5 (NationPress) The South Korean government reaffirmed that the average tariff rate on imports from the United States is below 1 percent, as stipulated in the bilateral free trade agreement (FTA) with the U.S., with expectations for further reductions this year.
Last year, the average tariff rate on goods imported from the U.S. was recorded at 0.79 percent, and this figure decreases further when taking into account refunds, according to Yonhap news agency.
This statement was made in response to U.S. President Donald Trump's assertion that South Korea's average tariff is four times that of the U.S., suggesting that the U.S. is being unfairly treated by both 'friends and foes.'
An official from Seoul's Ministry of Trade, Industry and Energy countered Trump's claims, labeling them as 'not true', and indicated that the South Korean government intends to engage in discussions with the U.S. through various channels, including the U.S. Embassy.
The official noted, 'Trump seems to be referencing South Korea's tariff on its most-favoured nations (MFNs), which stands at 13.4 percent.' This is approximately four times higher than the 3.3 percent tariff that the U.S. applies to its MFNs.
Nonetheless, the majority of U.S. exports to South Korea are exempt from tariffs under the Korea-U.S. FTA, the official clarified.
The average tariff rate for U.S. goods entering Seoul, which was 0.79 percent in 2024, is expected to decline further this year as part of the reduction plan outlined in the Korea-U.S. FTA, according to the ministry.
They stated, 'We will clarify that South Korea imposes nearly zero tariffs on U.S. goods to eliminate any misunderstandings by communicating with Washington through multiple channels, including our embassy and the newly formed working-level consultative bodies.'
Experts have suggested that Trump's comments might have been intended to bolster the U.S.'s bargaining power in negotiations with South Korea regarding tariffs and other matters, such as defense cost-sharing.
'I believe Trump is attempting to highlight that South Korea has an 'unfairly' large trade surplus with the U.S. and is looking to rectify it,' remarked Lee Tae-kyu, head of the global risk assessment team at the Federation of Korean Industries.
Lee further expressed concerns that Trump's statement could lead to the U.S. imposing reciprocal tariffs on South Korea in the coming month.
