Washington: U.S. Commerce Secretary Howard Lutnick has confirmed that Washington's 25 percent tariffs on South Korean autos have been lowered to 15 percent, effective Nov. 1, under a bilateral trade and investment deal. The lowered tariff was part of the two countries' trade deal finalized on Oct. 29 during a summit between President Lee Jae Myung and U.S. President Donald Trump in the southeastern city of Gyeongju.

According to Yonhap News Agency, in a memorandum of understanding signed Nov. 14 on South Korea's pledge to invest US$350 billion in the U.S. under the deal, the two sides agreed to apply the lowered tariff retroactively on the first day of the month that a special bill facilitating the investment was introduced at the National Assembly. The bill was introduced by the ruling Democratic Party on Nov. 26.

"The Republic of Korea has officially moved to implement their strategic-investment legislation in parliament," Lutnick said in a statement posted to his X account Monday (U.S. time). "In response, the U.S. will lower certain tariffs under the deal -- including auto tariffs to 15%, effective November 1. We are also removing tariffs on airplane parts and will 'un-stack' Korea's reciprocal rate to match Japan and the EU."

Earlier, Industry Minister Kim Jung-kwan sent an official letter to Lutnick to inform him of the bill's submission and request the prompt publication of the retroactive application of the lower tariff in the U.S. Federal Register. "Korea's commitment to American investment strengthens our economic partnership and domestic jobs and industry," Lutnick said in the statement. "We are also grateful for the deep trust between our two nations. I look forward to continuing to work closely with Seoul to build an even stronger and more prosperous future for both nations."