US Tariffs on Imports from South Korea

South Korea saw major tariff relief from the SCOTUS ruling — its IEEPA rate dropped from 25% to the 10% Section 122 tariff. Combined with the KORUS FTA (which eliminates MFN duties on qualifying goods), South Korea is now one of the most cost-effective Asian sourcing origins at $116B in annual US imports.

The KORUS FTA, in effect since 2012, eliminated tariffs on approximately 95% of bilateral trade in goods. The old 25% IEEPA tariff had created an unusually punitive layered structure on top of KORUS preferences. The SCOTUS ruling and shift to 10% Section 122 has restored South Korea's competitive position. South Korea has a Section 232 steel quota arrangement (TRQ) that exempts qualifying steel volumes from the 50% tariff.

Key Products Imported from South Korea

Top imports include semiconductors and display panels, passenger vehicles (Hyundai, Kia, Genesis), auto parts, machinery, organic chemicals, and steel products. South Korea is a critical supplier of memory chips, OLED displays, and EV batteries (Samsung SDI, LG Energy Solution, SK Innovation).

Recent Changes

Feb 20, 2026: SCOTUS struck down IEEPA tariffs — South Korea's rate dropped from 25% to 10% Section 122 (expires ~July 24, 2026). This represents a 15-point reduction and major relief for Korean exporters. Section 232 steel quota arrangement remains. Samsung, LG, SK, and Hyundai continue expanding US manufacturing operations (EV battery gigafactories in Georgia, Tennessee, and Michigan). KORUS FTA is stable.

Tips for Importers

KORUS FTA certificates of origin are now even more valuable — they eliminate MFN duties, leaving only the 10% Section 122 tariff (down from 25% IEEPA). For semiconductors, most enter at 0% MFN, so the tariff burden is just the 10% Section 122. Hyundai, Kia, and Genesis vehicles built in the US (Alabama, Georgia) avoid all import tariffs. Korean steel within the Section 232 TRQ avoids the 50% surcharge. The Section 122 expiry in ~July 2026 could remove the remaining 10% layer.