U.S. Confirms South Korea’s 15% Tariff Retroactive to Nov. 14 (Nov. 1 for Autos)

Trade Update • Dec. 4, 2025

Key Points

• The U.S. confirmed it has reduced certain tariffs on South Korean goods, including timber, lumber, aircraft, and parts, retroactive to November 14, 2025.
• Tariffs on South Korean automobiles and auto parts were adjusted retroactive to November 1, 2025.
• For goods with a column 1 duty below 15%, total duties are now capped at 15%. Goods with a column 1 duty of 15% or more no longer face additional duties.
• Civil aircraft and aircraft parts, including engines and flight simulators from South Korea, are exempt from previous additional duties.
• The HTSUS was updated with new codes for South Korean vehicles, light trucks, and parts, reflecting the new duty treatment.
• These changes align with the U.S.–Korea Strategic Trade and Investment Deal.

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The U.S. released a CBP guidance detailing the implementation of tariff changes under the U.S.-Korea Strategic Trade and Investment Deal. Most tariff adjustments take effect retroactively on November 14, 2025, with tariffs on automobiles and auto parts effective earlier on November 1. These changes implement the U.S.-Korea Strategic Trade and Investment Deal announced in July 2025.

The Office of the United States Trade Representative (USTR) also released a Federal Register notice outlining amendments to the Harmonized Tariff Schedule of the United States (HTSUS) for different categories of goods, including automobiles and automobile parts, timber, lumber and their derivatives, and certain aircraft and aircraft parts.

Changes to Section 232 Duties on Automobiles & Parts

Effective Nov. 1, 2025, changes apply to automobiles and parts entered for consumption or withdrawn from the warehouse on or after 12:01 a.m. Eastern Time on November 1, 2025. Section 232 tariffs are now based on the ad valorem Column 1 rate (Column 1-General or Column 1-Special) applicable to each product.

Automobiles

• Column 1 duty 15 percent or higher: no additional Section 232 duty. Use HTS 9903.94.60.
• Column 1 duty less than 15 percent: combined Column 1 and Section 232 duty is 15 percent. Use HTS 9903.94.61.

If a drawback is claimed on the Column 1 duty, report the Column 1 duty under the normal classification (Chapters 1–97) and report the difference between 15 percent and the Column 1 tariff under 9903.94.61.

Automobile Parts

• Column 1 duty 15 percent or higher: no additional Section 232 duty. Use HTS 9903.94.62.
• Column 1 duty less than 15 percent: combined Column 1 and Section 232 duty is 15 percent. Use HTS 9903.94.63.

HTSUS classifications covered by Section 232 duties on automobiles and parts are covered in CSMS 64624801 and 64916652, respectively.

Self-Certifying Automobile Parts

Applies to passenger vehicle and light truck parts when the importer certifies the parts will be used for automobile production or repair in the U.S., excluding:

• Articles in Chapters 72, 73, or 76
• Articles under subdivision (g) of U.S. Note 33 or subdivision (i) of U.S. Note 38 (MHDV parts)

Automobile parts include engines, engine parts, transmissions, powertrain components, and electrical components. Do not use Chapter 99 classifications for parts already under HTS 9903.94.62 or 9903.94.63.

For certification of parts not covered by exclusions:

• Column 1 duty 15 percent or higher: no additional Section 232 duty. Use HTS 9903.94.64.
• Column 1 duty less than 15 percent: combined Column 1 and Section 232 duty is 15 percent. Use HTS 9903.94.65.

Exemptions and Special Provisions

Automobiles and parts under Proclamation 10908 (as amended) are not subject to additional duties on:

• Semi-finished copper products and copper-intensive derivatives (HTS 9903.78.01)
• Aluminum products (HTS 9903.85.02, 9903.85.12) and derivative aluminum products (HTS 9903.85.04, .07, .08, .13, .14, .15)
• Iron or steel products (HTS 9903.81.87, .88, .94, .95) and derivative iron or steel products (HTS 9903.81.89, .90, .91, .93, .96, .97, .98, .99)
• Products from Canada (HTS 9903.01.10) and Mexico (HTS 9903.01.01)
• Wood products for parts (HTS 9903.76.01, .02, .03)

Automobiles under HTS 9903.94.60 and auto parts under HTS 9903.94.62, 9903.94.64, and 9903.94.66 (based on USMCA eligibility) are considered subject to Proclamation 10908 for Executive Order 14289 purposes. They are also subject to the unstacking provisions of Executive Order 14289, as modified by Proclamations 10947 and 10984.

Drawback Eligibility

Section 232 duties for automobile parts under Proclamation 10908 and Proclamation 10984 remain eligible for:

• Direct Identification Manufacturing Drawback Claims under 19 U.S.C. 1313(a)
• Substitution Manufacturing Drawback Claims under 19 U.S.C. 1313(b)

This applies to HTS headings 9903.94.63 and 9903.94.65.

Changes to Section 232 Duties on Wood Products

Effective for wood products entered for consumption or withdrawn from warehouse on or after 12:01 a.m. Eastern Time on November 14, 2025:

• Certain kitchen cabinets and upholstered wooden furniture from South Korea are subject to a combined Column 1 and Section 232 duty rate of 15 percent ad valorem. Use HTS 9903.76.23.
• Covered HTS classifications include: 9401.61.4011, 9401.61.4031
  9401.61.6011, 9401.61.6031, 9403.40.9060, 9403.60.8093, 9403.91.0080
• Section 232 duties on wood products, under Proclamation 10976, remain eligible for drawback claims.

Changes to Section 232 and Reciprocal Duties for Civil Aircraft

Starting November 14, 2025, South Korean civil aircraft (excluding military and unmanned aircraft), their engines, parts, components, subassemblies, and ground flight simulators are exempt from additional Section 232 and reciprocal tariffs if they meet the criteria of General Note 6 of HTSUS for duty-free treatment under the Agreement on Trade in Civil Aircraft. This applies even if the “Free (C)” rate previously appeared in the Special column. Use HTSUS 9903.02.81 for filing.

Tariffs removed under this update were previously applied under:

• Executive Order 14257 (April 2, 2025), as amended
• Proclamation 9704 (March 8, 2018), aluminum imports
• Proclamation 9705 (March 8, 2018), steel imports
• Proclamation 10962 (July 30, 2025), copper imports

Changes to Reciprocal Tariff

• The additional reciprocal tariff for South Korean products depends on the Column 1 duty rate:
  • Column 1 duty rate 15 percent or higher: no additional reciprocal tariff (HTS 9903.02.79).
  • Column 1 duty rate less than 15 percent: combined Column 1 plus reciprocal tariff equals 15 percent (HTS 9903.02.80).
• Entry summaries for 15 percent duty: report on HTS 9903.02.79; Chapter 1–97 value reported with zero duty.
• Reciprocal tariffs remain eligible for drawback under Executive Order 14257.
• HTS 9903.02.56 is discontinued after November 13, 2025.
• Exemptions continue for HTS 9903.01.30 through 9903.01.34.

Filers should continue to use HTS heading 9903.01.33 for products that are exempt from reciprocal tariffs under the Section 232 provisions.

Entry Filing and Corrections

Correcting Entries

Filers must update previously filed entries to reflect the revised duty rates under HTSUS. For unliquidated entries with duties already paid, importers can file a Post Summary Correction (PSC) to request a refund, which will be issued at liquidation. For liquidated entries, refunds can be requested by filing a protest within 180 days of liquidation under 19 U.S.C. 1514.

HTSUS Duty Reporting Sequence

For entry summaries with multiple HTSUS numbers, duties must be assigned to the correct HTSUS number and cannot be combined. The sequence for reporting secondary HTSUS classifications is:

1. Chapter 98 classification (if applicable)
2. Chapter 99 classifications for additional duties, in this order if applicable:
   • Section 301
   • IEEPA Fentanyl
   • IEEPA Reciprocal
   • Section 232 or 201 duties
   • Section 201 or 232 quota
3. Chapter 99 for REPLACEMENT duty or other use (include IEEPA/Section 232 replacement duty here)
4. Chapter 99 for other quotas not covered above
5. Chapter 1–97 primary classification for the commodity

The entered value should be reported on the Chapter 1–97 subheading unless Chapter 98 provisions specify otherwise. For filing errors, contact your CBP representative or the ACE Help Desk. Questions may be sent to Trade Remedy at traderemedy@cbp.dhs.gov.

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