The U.S. and South Korea agreed on December 3rd to revise its free-trade agreement and make change to certain provisions. According to the agreement, the U.S. will end its 2.5% tariff on automobiles in five years, while South Korea will immediately cut its 8% tariff on U.S. car imports to 4%, rather than eliminating it entirely.
“South Korean car sales to the U.S. will see limited impact from the revision,” South Korean Trade Minister Kim Jong Hoon said.
The U.S.-Korean accord, which involves the almost $68 billion in trade between the two countries, would be the U.S.’s largest trade agreement since the North American Free Trade Agreement in 1994.