South Korea submits special Bill aimed at cutting US car levies

Submission was a prerequisite for reducing 25% tariff on South Korean vehicles to 15%

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South Korea's ruling party has proposed a special Bill to implement the country's US$350 billion (S$455 billion) investment pledges to the US, paving the way for American tariffs on South Korean automobiles to be lowered to 15 per cent starting from November.

The submission of the Bill which outlines how the pledged investments will be executed - was a prerequisite for reducing the 25 per cent levy on South Korean vehicles to 15 per cent, South Korean officials said.

“With the introduction of this special Bill, the conditions are now in place to retroactively apply the tariff cut on automobiles and auto parts from 25 per cent to 15 per cent as of Nov 1,’ South Korea’s Finance Ministry said in a statement on Nov 26.

South Korea notified the US Secretary of Commerce of the move and requested a prompt publication of a notice in the Federal Register to confirm the modification to the tariffs as agreed, the ministry said.