South Korea Tariffs 2026
South Korea has a free trade agreement with the US (KORUS) — most goods enter at 0% MFN duty. Since July 2026 the forced-labor tariff tops Korean goods up to a 12.5% floor; cars pay 15% all-in and steel 50% under §232. Still far cheaper than China for chips, batteries and machinery.
KORUS MFN rate
0%
most qualifying goods
Forced-labor floor
12.5%
combined with MFN
§232 Steel
50%
quota ended 2025
FTA since
2012
KORUS in force Mar 2012
KORUS FTA — America's Biggest Asia FTA
The Korea-US Free Trade Agreement is the largest US FTA with an Asian country. It entered into force on March 15, 2012, and eliminated tariffs on the vast majority of goods. By 2022, over 99% of Korea-US bilateral trade was tariff-free. The agreement was updated in 2018 to address auto trade provisions.
Tariff elimination
Immediate elimination of most MFN rates on Day 1 (March 2012), with remaining goods phased to 0% over 5–10 years. Virtually all industrial goods are now at 0%.
Rules of origin
Korean goods must meet KORUS origin requirements — generally based on tariff classification change at the heading level, or a Regional Value Content threshold of 35–55% depending on method.
Cumulation
KORUS allows cumulation with US content — Korean goods incorporating US-origin materials more easily satisfy origin rules.
Certificate of Origin
Importers must maintain documentation supporting the KORUS claim. CBP may audit origin declarations. Certified exporter declarations or importer's knowledge are both accepted.
Steel: the Quota Is Gone — 50% Section 232
Korea's 2018 steel quota ended on 12 March 2025, when all Section 232 country arrangements were terminated. Rates rose to 50% in June 2025, and since 6 April 2026 they apply to the full customs value of steel, aluminum and copper articles (25% for derivatives). KORUS does not change this.
South Korea Tariff Rates by Product (2026)
| Product | HS | MFN | KORUS |
|---|---|---|---|
| Passenger vehicles (cars) | 8703 | 2.5% | 15% all-in |
| Steel (flat-rolled) | 7208–7212 | 0% | 50% §232 |
| Aluminum | 7601 | 0–2.6% | 50% §232 |
| Computers, phones, chips | 8471, 8517.13, 8542 | 0% | 0% |
| Displays / OLED panels | 8528 | 0–5% | up to 12.5% |
| Ships & marine vessels | 8901–8906 | 0–1.5% | up to 12.5% |
| Petrochemicals / plastics | 3900–3999 | 0–6.5% | up to 12.5% |
| Apparel / textiles | 6100–6217 | 12–32% | 0%*† |
| Pharmaceuticals | 3004 | 0% | 0% |
| Agricultural goods | varies | varies | TRQ |
* KORUS rate requires qualifying origin and supporting documentation.
"Up to 12.5%": the forced-labor tariff tops the MFN rate up to 12.5% in total. † Apparel with MFN above 12.5% pays no forced-labor duty.
2026: The Forced-Labor Tariff Applies to KORUS Goods
The 10% Section 122 surcharge that followed the Supreme Court's IEEPA ruling expired on 24 July 2026. Its replacement, the forced-labor Section 301 tariff, puts Korea in the 12.5% combined tier: goods whose MFN rate is below 12.5% are topped up to 12.5% in total. It applies alongside KORUS — the FTA removes MFN duty, not this tariff. How the floor is computed for goods entering at a KORUS 0% rate is worth confirming with your customs broker.
How to Claim the KORUS FTA Rate — 5 Steps
KORUS preferential rates are not applied automatically — the importer must claim them. Here's the process:
Confirm qualifying origin
Your Korean supplier must confirm the goods meet KORUS rules of origin. For most industrial goods: the goods must be wholly obtained in Korea or undergo a tariff classification change (TCC) at the 4-digit HS heading level. Some goods require a Regional Value Content (RVC) of 35–55%.
Obtain origin certification
KORUS accepts three formats: (a) a signed exporter/producer certification on the commercial invoice or separate document, (b) an importer's own knowledge of origin, or (c) a written representation from the producer. There is no mandatory KORUS certificate of origin form — the certification can be on any document.
Claim KORUS on CBP Form 7501
On your Entry Summary (CBP Form 7501), enter 'KR' as the Special Program Indicator (SPI) in the duty rate field alongside the HTS code. This signals to CBP that you're claiming the KORUS preferential rate.
Retain records for 5 years
CBP can audit KORUS origin claims for up to 5 years after entry. Maintain all origin certifications, production records, and supplier declarations. If CBP initiates a verification, you have 30 days to respond with supporting documentation.
File a Prior Disclosure if needed
If you realize a KORUS claim was incorrect (wrong origin), file a prior disclosure with CBP before they contact you. Voluntarily correcting claims significantly reduces penalties.
South Korea vs China — Electronics Comparison
| Product ($100K value) | 🇨🇳 China duty | 🇰🇷 Korea (KORUS) | Savings |
|---|---|---|---|
| Semiconductors / ICs | $62,500 (50% §301 + 12.5%) | $12,500 (12.5% floor) | $50,000 |
| Monitors (8528.52) | $12,500 (List 4B + 12.5%) | $12,500 (12.5% floor) | $0 |
| Li-ion batteries | $40,900 (3.4% + 25% §301 + 12.5%) | $12,500 (12.5% floor) | $28,400 |
| Gearing / machinery parts | $40,000 (2.5% + 25% §301 + 12.5%) | $12,500 (12.5% floor) | $27,500 |
| Passenger vehicles | $52,500 (2.5% + 25% §301 + 25% §232) | $15,000 (15% all-in §232) | $37,500 |
South Korea Tariffs — FAQs
KORUS still removes MFN duty on most qualifying Korean goods, but since 24 July 2026 Korea is in the 'combined 12.5%' tier of the forced-labor Section 301 tariff: goods whose MFN rate is below 12.5% are topped up to 12.5% in total. So Korean machinery, chemicals and most electronics pay up to 12.5% (computers, phones and chips are exempt), while goods with MFN above 12.5% (much apparel) pay no extra. Cars and car parts pay 15% all-in under the Section 232 deal; steel, aluminum and copper pay 50%.
Yes. The KORUS FTA (Korea-United States Free Trade Agreement) entered into force on March 15, 2012. It eliminated tariffs on most goods between the two countries over a phase-in period. By 2022, over 99% of US-Korea trade was duty-free under KORUS. The agreement was renegotiated in 2018 to update auto tariff provisions.
Yes. Korea's steel quota ended on 12 March 2025, when all country exemptions were terminated. Since 6 April 2026 Korean steel, aluminum and copper articles pay 50% of full customs value. Cars and car parts pay 15% all-in under the 2025 US-Korea arrangement. Section 232 goods do not also pay the forced-labor tariff.
Computers, smartphones, network gear and chips carry 0% MFN duty under the Information Technology Agreement and are exempt from the forced-labor tariff (HTSUS U.S. note 52), and Korea pays no China-style Section 301 list duties — so they enter duty-free. Other electronics (TVs, batteries, audio) pay the 12.5% combined floor. Chinese chips pay 50% and Chinese batteries 40.9%.
15% in total. KORUS had cut the 2.5% MFN rate to 0%, but Korean passenger vehicles and parts now fall under the Section 232 auto tariff at the 15% all-in rate agreed in the 2025 US-Korea arrangement. They do not also pay the forced-labor tariff.
Korea wins wherever China's Section 301 list rate is high. Chips: 0% from Korea vs 50% from China. Li-ion batteries: 12.5% vs 40.9%. Gearing and machinery parts: up to 12.5% vs 40%. Laptops and computer monitors are duty-free from both.
Related Tariff Guides
Tariff data based on HTSUS 2026, KORUS FTA schedules, and USTR/CBP actions through September 2026. Steel quota availability changes — verify with CBP. Not legal or customs advice.
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Key Facts — South Korea 2026
- KORUS FTA: 0% on qualifying goods
- 99% of Korea-US trade duty-free
- Forced-labor tariff: 12.5% combined floor
- Cars: 15% all-in (§232 deal)
- Steel & aluminum: 50% §232
- No Section 301 (China-specific only)
- KORUS in force since March 2012
- MPF: 0.3464% on all entries