Phaseout of tariffs on Korean pickups extended

The extension of the phaseout of 25 percent U.S. tariffs, agreed to during KORUS talks, was officially established in a presidential proclamation on Friday.    President Donald Trump on Friday issued a proclamation that will implement recently negotiated changes to the Korea-U.S. Free Trade Agreement (KORUS), as well as several other trade actions related to U.S. trade preference programs, various FTAs and other issues.
   The proclamation will officially extend the phaseout of the 25 percent tariff on pickup trucks from South Korea through 2040, after those tariffs had been set to expire in 2021.
   According to the proclamation, the tariff rate will continue through 2040 on HTS subheadings (ellipses used to signify applicability to various 10-digit subheadings):
   • 8704.21.00 (Motor vehicles for the transport of goods: other, with compression-ignition internal combustion piston engine [diesel or semi-diesel]; GVW [gross vehicle weight] not exceeding 5 metric tons).
   • 8704.22.50 (Motor vehicles for the transport of goods: GVW exceeding 5 metric tons but not exceeding 20 metric tons; other …).
   • 8704.23.00 (Motor vehicles for the transport of goods: GVW exceeding 20 metric tons).
   • 8704.31.00 (Motor vehicles for the transport of goods: other, with spark-ignition internal combustion piston engine: GVW not exceeding 5 metric tons …).
   • 8704.32.00 (Motor vehicles for the transport of goods: other, with spark-ignition internal combustion piston engine: GVW exceeding 5 metric tons …).
   • 8704.90.00 (Motor vehicles for the transport of goods: other, with spark-ignition internal combustion piston engine: other).
   The proclamation will apply to goods entered or withdrawn from warehouse for consumption starting Tuesday. Imports of goods from South Korea classified under those subheadings will be free starting Jan. 1, 2041, according to the proclamation.
   In addition to the tariff extension, KORUS modifications agreed to in March also will exempt more U.S. car exports from duplicative safety standards, revamp customs procedures and restrict South Korea from discriminating against U.S. pharmaceutical exports.
   The two countries also agreed to allow steel from South Korea to be imported under a quota, instead of a 25 percent tariff, pursuant to Trump administration Section 232 measures imposed earlier this year. 
   That quota has been in effect since May 1.
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Brian Bradley

Based in Washington, D.C., Brian covers international trade policy for American Shipper and FreightWaves. In the past, he covered nuclear defense, environmental cleanup, crime, sports, and trade at various industry and local publications.