Importing from South Korea: KORUS FTA, Duty Rates, and Customs Fees
Calculate U.S. import duties on South Korean goods. Covers KORUS FTA preferences, Section 232 on steel, autos at 15%, semiconductor tariffs, and duty stacking.
Co-Founder of GingerControl, Building scalable AI and automated workflows for trade compliance teams.
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South Korean goods benefit from the KORUS FTA, which eliminated tariffs on most products when it took effect in 2012. However, Section 232 tariffs override KORUS preferences for steel and aluminum (50%), automobiles and auto parts (reduced to 15% under the November 2025 bilateral deal), lumber (15%), copper (50%), and semiconductors (25%). Non-Section 232 goods face their KORUS FTA rate plus a 10% Section 122 surcharge.
How Does the KORUS FTA Affect South Korean Import Duties?
The KORUS FTA eliminated tariffs on approximately 95% of bilateral trade in industrial and consumer products. Most manufactured goods, electronics, machinery, and chemicals from South Korea enter at 0% duty under KORUS. The FTA also phased out tariffs on many agricultural products, though some sensitive categories like rice retain higher rates. Under the current tariff regime, KORUS preferences still apply as the base rate, but Section 232 tariffs and the Section 122 surcharge layer on top.
South Korea was the source of $56.4 billion in U.S. trade deficit in 2025. Automobiles and auto parts accounted for roughly 37% of total U.S. goods imports from South Korea in 2024, making the auto sector the single most important product category in the bilateral trade relationship. Semiconductors, machinery, electronics, and steel round out the top import categories.
Last updated: March 2026
The U.S.-Korea Strategic Trade and Investment Deal
In July 2025, the U.S. and South Korea announced a strategic trade and investment deal. The November 2025 fact sheet provided detailed terms:
Tariff provisions:
| Product Category | Pre-Deal Rate | Deal Rate | Notes |
|---|---|---|---|
| Autos and auto parts | 25% (Section 232) | 15% (inclusive of KORUS/MFN) | Effective November 1, 2025 |
| Timber and lumber | 25% (Section 232) | 15% (inclusive of KORUS/MFN) | Same effective date |
| Steel and aluminum | 50% (Section 232) | 50% (unchanged) | No relief under deal |
| Pharmaceuticals | Potential Section 232 | Capped at 15% | For future Section 232 tariffs |
| Semiconductors | 25% (Section 232, Jan 2026) | MFN or better terms | Terms no less favorable than largest-volume partner |
| Civil aircraft | Various | Fully exempt | Exemption from reciprocal and Section 232 |
| Generic pharmaceuticals | MFN + surcharge | MFN only (Annex III exemption) | Removed from surcharge |
Investment commitments: South Korea committed to $150 billion for U.S. shipbuilding investment and $200 billion across semiconductors, nuclear energy, batteries, biotechnology, and critical minerals. South Korea also committed to purchasing $100 billion in U.S. energy products.
Key uncertainty: The deal was structured around IEEPA tariff rates, which the Supreme Court struck down in February 2026. Section 232 tariffs (autos, steel, aluminum, semiconductors) were not affected by the Supreme Court ruling and remain in force. The Section 122 surcharge now applies to non-Section 232 goods on top of the KORUS/MFN rate.
What South Korean Products Face Section 232 Tariffs?
| Product | Section 232 Rate | KORUS Exemption? | Deal Rate |
|---|---|---|---|
| Steel (all forms) | 50% | No | 50% (unchanged) |
| Aluminum (all forms) | 50% | No | 50% (unchanged) |
| Copper (semi-finished) | 50% | No | 50% (unchanged) |
| Passenger vehicles | 25% → 15% | No (overrides KORUS 0%) | 15% inclusive |
| Auto parts | 25% → 15% | No (overrides KORUS 0%) | 15% inclusive |
| Semiconductors (advanced) | 25% | No | MFN or better |
| Timber and lumber | 25% → 15% | No | 15% inclusive |
The auto tariff change is significant. Before Section 232, South Korean vehicles entered duty-free under KORUS. South Korean automakers (Hyundai, Kia, Genesis) and GM Korea exported over 400,000 vehicles to the U.S. in 2024. Even at the reduced 15% rate, this represents a substantial cost increase compared to the pre-tariff KORUS baseline.
GingerControl's Tariff Calculator covers the full U.S. tariff stack for South Korean-origin goods: KORUS FTA preferences, Section 232, Section 122, and the bilateral deal terms. Enter your HTS code and see exactly how the duty layers interact.
How Does Section 122 Interact with KORUS?
Under the Section 122 regime (effective February 24, 2026), the 10% surcharge applies on top of each country's existing duty rate. For South Korea, this means:
- KORUS-covered goods (non-Section 232): KORUS rate (often 0%) + 10% Section 122 = 10% total
- Section 232 goods: Section 232 rate applies (no Section 122 stacking)
- Annex III goods (generic pharmaceuticals, certain natural resources): KORUS/MFN rate only (no Section 122)
This gives South Korea a slight advantage over countries without FTAs like Japan and Taiwan, where the Section 122 surcharge layers on top of higher MFN rates. For example, a product with a 3.5% MFN rate from Japan faces 13.5% total (MFN + Section 122), while the same product from South Korea at 0% KORUS faces only 10% (KORUS + Section 122).
GingerControl is a trade compliance AI platform that helps importers, exporters, and customs brokers classify products, simulate tariff costs, and track policy changes. The Tariff Calculator supports 200+ country side-by-side comparison, so importers can evaluate whether sourcing from South Korea offers a tariff advantage over alternative origins.
Worked Example: Calculating Duty on a South Korean Import
Product: Automotive brake pads (HTS 6813.81.00) Declared value (CIF): $200,000 Country of origin: South Korea
| Duty Layer | Rate | Amount |
|---|---|---|
| KORUS FTA base rate | 0% | $0 |
| Section 232 (auto parts, deal rate) | 15% | $30,000 |
| Section 122 | N/A (Section 232 primacy) | $0 |
| MPF | 0.3464% (max $614.35) | $614.35 |
| HMF | 0.125% | $250 |
| Total estimated duties and fees | $30,864.35 | |
| Effective duty rate | ~15.4% |
Before the Section 232 auto tariffs, these brake pads would have entered at 0% under KORUS. The 15% deal rate represents a significant cost increase, but is still lower than the 25% rate applied to non-deal countries.
FAQ
Are most South Korean goods still duty-free under KORUS?
Under KORUS alone, yes. The FTA eliminated tariffs on approximately 95% of industrial and consumer products. However, Section 232 tariffs override KORUS preferences for steel, aluminum, autos, lumber, copper, and semiconductors. Additionally, the 10% Section 122 surcharge applies on top of KORUS rates for non-Section 232 goods.
What tariff rate do South Korean cars face?
South Korean passenger vehicles face a 15% tariff under the November 2025 bilateral deal, down from the standard 25% Section 232 rate. Before Section 232, Korean vehicles entered duty-free under KORUS. The 15% rate is inclusive of the KORUS/MFN rate, meaning no additional surcharge applies.
Are South Korean semiconductors subject to tariffs?
Yes. A 25% Section 232 tariff on certain advanced semiconductors took effect January 15, 2026. Under the bilateral deal, South Korea is promised terms no less favorable than those offered to any other partner with comparable semiconductor trade volume. The final terms for Korean semiconductor tariffs are still being negotiated.
How does South Korea's tariff rate compare to Japan and Taiwan?
South Korea has a slight advantage due to KORUS. For non-Section 232 goods, South Korea pays KORUS rate (often 0%) + 10% Section 122, while Japan and Taiwan pay higher MFN rates + 10% Section 122. For Section 232 products, the deal gives South Korea 15% on autos (vs. 15% for Japan and EU, 25% for others) and potentially favorable semiconductor terms.
Is the KORUS FTA at risk?
The KORUS FTA remains in force, but the bilateral deal framework exists alongside (and in some cases overrides) KORUS provisions. Congress ratified KORUS and may consider whether the 2025 bilateral deal requires separate congressional approval. Some members have introduced legislation requiring joint resolutions for tariffs on FTA partners.
Can GingerControl model KORUS preferences alongside Section 232?
Yes. GingerControl's Tariff Calculator models the full interaction between KORUS FTA preferences, Section 232 tariffs, Section 122 surcharges, and the bilateral deal rates for South Korean-origin goods. Enter your HTS code and see every duty layer transparently.
Calculate Your South Korea Import Duties
The tariff landscape for South Korean imports is uniquely complex: KORUS preferences, Section 232 overrides at different rates by product, a bilateral deal with reduced auto tariffs, and the Section 122 surcharge all interact. GingerControl's Tariff Calculator handles the full stack with transparent breakdowns showing every duty component. Try it free →
GingerControl is not just a tool. We work with importers and trade compliance teams on process consulting, digital transformation strategy, and end-to-end custom system development. Talk to our team →
References
[REF 1] CRS — U.S.-South Korea Bilateral Trade Relations Data cited: KORUS provisions, Section 232 auto rate reduced to 15%, steel/aluminum at 50%, semiconductor deal terms, $150B/$200B investment commitments Source: CRS IF10733 Published: 2026
[REF 2] CRS — U.S. Tariff Actions and U.S.-South Korea Trade Data cited: 37% of imports are autos/parts, steel quota termination, Section 232 investigations, KORUS review schedule Source: CRS IN12569 Published: 2026
[REF 3] BEA — U.S. International Trade in Goods and Services, Annual 2025 Data cited: U.S. trade deficit with South Korea of $56.4 billion in 2025 Source: BEA Published: February 2026
[REF 4] NAM — New Trade Announcements Data cited: 15% auto/lumber rate, pharmaceutical cap at 15%, semiconductor MFN terms, Annex III exemptions Source: NAM Published: November 21, 2025
[REF 5] The Diplomat — New US Tariffs, Same Problems for Japan, South Korea, and Taiwan Data cited: Section 122 interaction with KORUS vs. MFN rates, South Korea's slight tariff advantage Source: The Diplomat Published: February 24, 2026
[REF 6] S&P Global — US Trade Agreements: Korea Framework Data cited: 15% inclusive auto rate, steel/aluminum unchanged at 50%, pharmaceutical cap, semiconductor terms Source: S&P Global Published: November 24, 2025
Written by
Chen Cui
Co-Founder of GingerControl
Building scalable AI and automated workflows for trade compliance teams.
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