South Korea Reaffirms Near-zero Tariff Rate On US Imports Under FTA

SEOUL, March 5 (Bernama-Yonhap) -- The South Korean government on Wednesday reaffirmed that its average tariff rate on United States (US) imports remains below one per cent under the bilateral free trade agreement (FTA), with further reductions expected this year.

According to Yonhap news agency, Seoul previously reported that the average tariff on US goods stood at 0.79 per cent in 2023, noting that the rate is even lower when refunds are factored in.

The clarification follows US President Donald Trump’s claim that South Korea’s average tariff is four times higher than that of the US, alleging unfair treatment.

An official from the Ministry of Trade, Industry and Energy dismissed Trump’s assertion as “not true,” adding that South Korea will address the issue through diplomatic channels, including the US Embassy in Seoul.

"Trump appears to be referring to South Korea’s most-favoured nation (MFN) tariff rate, which is 13.4 per cent -- about four times the 3.3 per cent MFN tariff imposed by the US," the official explained.

However, under the South Korea-US FTA, most US exports to South Korea are tariff-free.

The ministry confirmed that the 0.79 per cent average tariff rate will decrease further this year as part of the agreement’s reduction plan.

“We will clarify that South Korea imposes near-zero tariffs on US goods to prevent misunderstandings by engaging with Washington through multiple channels, including our embassy and newly established working-level consultative bodies,” the ministry stated.

-- BERNAMA-ANADOLU