US Tariffs on South Korean Imports 2026: KORUS FTA Benefits & Current Rates
South Korea stands out among major US trading partners for one critical reason: it has a comprehensive free trade agreement with the United States. The KORUS FTA, in effect since 2012, eliminates tariffs on the vast majority of bilateral trade, giving Korean exporters like Samsung, Hyundai, SK Hynix, and LG a significant cost advantage over competitors from countries without FTA access. In 2025, the US imported approximately $115 billion in goods from South Korea, spanning semiconductors, automobiles, electronics, machinery, and steel.
This guide explains how the KORUS FTA works, which tariffs still apply despite the FTA, and how the post-Supreme Court tariff landscape affects Korean imports in 2026.
The KORUS FTA: America's Most Important Asian Trade Deal
The Korea-US Free Trade Agreement took effect on March 15, 2012 and was amended in 2018. It is the most commercially significant bilateral FTA the US has in the Asia-Pacific region, covering approximately $170 billion in annual two-way goods trade.
What KORUS Covers
- Approximately 95% of bilateral trade in goods is duty-free or subject to reduced tariffs
- Most industrial goods enter the US at 0% duty under KORUS
- Electronics and semiconductors: 0% (also 0% MFN under ITA)
- Passenger automobiles: 0% under KORUS (vs. 2.5% MFN for non-FTA countries)
- Auto parts: Most at 0% under KORUS
- Machinery: 0% on most categories
- Textiles and apparel: Duty-free if they meet yarn-forward rules of origin
- Agriculture: Phased tariff reductions, some sensitive products excluded or under TRQs
How to Qualify for KORUS Rates
KORUS duty-free treatment is not automatic. Importers must meet specific requirements:
- Rules of origin: The product must be "originating" under KORUS rules, meaning it was wholly obtained in Korea, or manufactured using materials that meet specific tariff shift and/or regional value content requirements
- Certification: The importer must have a KORUS certification of origin (self-certification is permitted)
- Direct shipment: Goods should generally be shipped directly from Korea to the US, though transshipment through third countries is allowed if the goods remain under customs control
- CBP entry: The importer must claim the KORUS preferential rate on the entry summary (CBP Form 7501) using the appropriate Special Program Indicator (SPI) code "KR"
Current Tariff Rates on South Korean Imports
Even with the KORUS FTA, several tariff layers apply to Korean imports in 2026:
| Tariff Layer | Rate | Products Affected |
|---|---|---|
| KORUS FTA Rate | 0% on ~95% of goods | Most industrial, electronic, auto goods |
| MFN Rate (non-KORUS goods) | Varies by HTS code | Products not covered or not qualifying |
| Section 122 Surcharge | 10% | All imports (regardless of FTA status) |
| Section 232 (Steel) | 25% | Steel articles |
| Section 232 (Aluminum) | 10% | Aluminum articles |
| Antidumping/CVD Orders | Varies | Specific products (steel pipe, washers, etc.) |
The critical point: the Section 122 surcharge applies even to KORUS-eligible goods. This means Korean products that would normally enter at 0% duty currently face a 10% surcharge. This temporary measure (150 days) was imposed after the Supreme Court struck down IEEPA tariffs and is expected to expire in mid-to-late July 2026.
Semiconductors: Samsung and SK Hynix
South Korea is the world's second-largest semiconductor exporter after Taiwan, with Samsung and SK Hynix dominating the global memory chip market. Samsung is the world's largest DRAM and NAND flash manufacturer, while SK Hynix is the second-largest DRAM maker.
| Product | Key HTS Codes | KORUS Rate | MFN Rate | Effective Rate (with Section 122) |
|---|---|---|---|---|
| Memory chips (DRAM/NAND) | 8542.32 | Free | Free | 10% |
| Processors | 8542.31 | Free | Free | 10% |
| Other ICs | 8542.39 | Free | Free | 10% |
| Display drivers | 8542.39 | Free | Free | 10% |
For semiconductors, the KORUS FTA and the WTO ITA both provide 0% duty, so the FTA does not add incremental benefit over MFN rates. The only duty cost is the 10% Section 122 surcharge, which affects Korean and Taiwanese chips equally.
Both Samsung and SK Hynix have announced major US manufacturing investments, partly in response to tariff risks and CHIPS Act incentives. Samsung is building a $17 billion fab in Taylor, Texas, and SK Hynix is investing in advanced packaging facilities in Indiana.
Automobiles: Hyundai, Kia, and Genesis
South Korea's auto sector is one of the biggest KORUS FTA beneficiaries. Korean passenger cars enter the US at 0% duty under KORUS, compared to 2.5% MFN for Japanese and European vehicles.
| Product | KORUS Rate | MFN Rate | Effective Rate (with Section 122) |
|---|---|---|---|
| Passenger cars | Free | 2.5% | 10% (KORUS) or 12.5% (MFN) |
| Light trucks/SUVs | 25% (Chicken Tax still applies) | 25% | 35% |
| Auto parts | Free (most) | 0% - 6% | 10% (KORUS) or 10-16% (MFN) |
| EV batteries | Free | 3.4% | 10% (KORUS) or 13.4% (MFN) |
Korean automakers have also invested heavily in US manufacturing. Hyundai operates plants in Alabama and is building a $5.5 billion EV and battery facility in Georgia. Kia manufactures at its West Point, Georgia plant. These domestic operations avoid tariffs entirely on vehicles produced for the US market.
Steel: Section 232 Overrides KORUS
Steel is the most important exception to KORUS FTA benefits. Section 232 tariffs, imposed on national security grounds, apply regardless of FTA status. This means Korean steel faces:
- 25% Section 232 tariff on all covered steel products
- Plus 10% Section 122 surcharge
- KORUS FTA rate does NOT apply -- Section 232 overrides FTA preferences for steel
- Some Korean steel products also face antidumping or countervailing duty orders
South Korea is a major steel producer (POSCO is one of the world's largest steelmakers), and the Section 232 tariffs have significantly impacted Korean steel exports to the US. Unlike the EU, Korea does not have a negotiated tariff-rate quota for steel, meaning all volumes face the full 25% tariff.
Other Key Import Categories
Electronics and Displays
Samsung and LG are major exporters of consumer electronics, displays, and home appliances. Most electronics enter at 0% under both KORUS and the ITA. Large residential washing machines are a notable exception -- they face safeguard tariffs under Section 201 (imposed in 2018) on top of MFN rates.
Machinery and Industrial Equipment
Korean machinery, including construction equipment (Doosan, Hyundai Heavy Industries), enters at 0% under KORUS. This gives Korean machinery manufacturers a cost edge over Japanese competitors who face MFN rates of up to 6%.
Petrochemicals and Plastics
South Korea is a significant petrochemical exporter. Most petrochemical products enter at 0% under KORUS, compared to MFN rates of 0-6.5% for non-FTA countries. The Section 122 surcharge of 10% applies to all.
KORUS vs. Non-FTA Countries: The Cost Advantage
The KORUS FTA gives Korean exporters a tangible cost advantage. Here is a comparison for representative products:
| Product | Korea (KORUS) | Japan (No FTA) | EU (No FTA) | Taiwan (No FTA) |
|---|---|---|---|---|
| Passenger car ($30K) | $3,000 (10%) | $3,750 (12.5%) | $3,750 (12.5%) | N/A |
| Auto parts ($10K) | $1,000 (10%) | $1,000-$1,600 | $1,000-$1,600 | $1,000-$1,600 |
| Industrial machinery ($50K) | $5,000 (10%) | $5,000-$8,000 | $5,000-$8,000 | $5,000-$8,000 |
| Semiconductors ($1M) | $100,000 (10%) | $100,000 (10%) | $100,000 (10%) | $100,000 (10%) |
Note that for semiconductors, the advantage disappears because all countries benefit from 0% MFN under the ITA. The KORUS advantage is most pronounced on goods with positive MFN rates, such as automobiles, auto parts, and machinery.
Practical Tips for Importing from South Korea
- Always claim KORUS rates. Use SPI code "KR" on your CBP entry summary. Many importers overpay simply by failing to claim the preferential rate.
- Get your origin documentation right. Maintain certificates of origin and be prepared for CBP verification. Self-certification is allowed under KORUS but requires accurate records.
- Know the exceptions. Steel (Section 232), some agricultural products, and light trucks (Chicken Tax) are not fully covered by KORUS. Do not assume everything is duty-free.
- Plan around Section 122 expiration. When the 10% surcharge expires (expected July 2026), KORUS goods will revert to their normal 0% rate -- potentially saving significant money on deferred shipments.
- Claim IEEPA refunds. If you imported Korean goods and paid IEEPA tariffs between April 2025 and February 2026, file refund claims with CBP immediately.
- Compare with Japanese sources. If you currently source from Japan, check whether comparable Korean products are available. The KORUS duty savings can be substantial on goods with positive MFN rates.
How South Korea Compares to Other Import Sources
| Country | FTA with US? | Section 122 Rate | Key Advantage/Disadvantage |
|---|---|---|---|
| South Korea | KORUS FTA | 10% | Most goods duty-free; steel exception |
| Japan | No | 10% | Comparable products, higher duty rates |
| China | No | 10% | Section 301 adds 7.5-25%+ on top |
| Taiwan | No | 10% | Semiconductor equal; other goods higher |
| EU | No | 10% | No FTA, full MFN rates |
| UK | No | 10% | No FTA post-Brexit |
| Mexico | USMCA | 10% | Similar FTA benefits in different sectors |
Frequently Asked Questions
What tariffs does the US charge on South Korean imports in 2026?
Most South Korean goods qualify for duty-free treatment under the KORUS FTA. However, the Section 122 surcharge of 10% applies to all imports regardless of FTA status. Steel faces 25% Section 232 tariffs, and aluminum faces 10%. Some agricultural products and light trucks are also excluded from full KORUS benefits.
What is the KORUS FTA and how does it help importers?
The KORUS (Korea-US) Free Trade Agreement is a comprehensive bilateral trade deal in effect since March 2012. It eliminates tariffs on approximately 95% of bilateral goods trade. Importers must claim the preferential rate using SPI code "KR" on their entry documents and maintain origin certification to qualify.
Does the KORUS FTA override the Section 122 surcharge?
No. The Section 122 surcharge of 10% applies to all imports regardless of free trade agreement status. Korean goods that would normally enter duty-free under KORUS still face the 10% Section 122 surcharge until it expires, which is expected in mid-to-late July 2026.
How do South Korean auto tariffs compare to Japanese auto tariffs?
Under KORUS, Korean passenger cars enter the US at 0% duty, compared to the 2.5% MFN rate for Japanese cars. Both face the 10% Section 122 surcharge. Light trucks from both countries face the 25% Chicken Tax. The KORUS advantage gives Hyundai and Kia a measurable cost edge over Toyota, Honda, and other Japanese brands on imported vehicles.
Are Samsung and SK Hynix semiconductor imports from Korea tariff-free?
Semiconductors from South Korea qualify for 0% duty under both the KORUS FTA and the WTO Information Technology Agreement (MFN). The only current duty cost is the 10% Section 122 surcharge. On high-volume semiconductor shipments, this surcharge can represent millions of dollars, affecting both Samsung and SK Hynix exports to the US.