US cuts tariffs on Korean forklifts, industrial machinery from 25% to 15%, covering $2.3B in exports

The Trump administration has cut Section 232 tariffs on steel, aluminum and copper derivative products from 25% to 15% for countries that have reached tariff agreements with the United States, offering relief to South Korean manufacturers in those sectors.

According to the Ministry of Trade, Industry and Energy on Tuesday, the U.S. government issued a proclamation Monday restructuring Section 232 tariff measures on steel, aluminum and copper derivatives.

Under the revised framework, South Korean-made forklifts, bulldozers, tractors and other mobile industrial machinery will see their tariff rate drop from 25% to 15%.

Countries eligible for the reduction include South Korea, Argentina, Ecuador, El Salvador, Guatemala, Japan, Liechtenstein, Switzerland, Taiwan, the United Kingdom and EU member states — all of which have concluded tariff agreements with the United States.

Products imported from countries without such agreements will continue to face the existing 25% tariff.

Agricultural equipment and air-conditioning systems will also be subject to a 15% tariff rate regardless of whether the exporting country has a tariff agreement with the United States.

The tariff reductions take effect Monday and will apply on a temporary basis through the end of next year.

Foreign-made goods in which American-produced steel and aluminum account for at least 85% of total weight will qualify for a preferential 10% tariff rate.

The U.S. government eased the domestic metal content threshold from 95% to 85%. The White House said the move is intended to encourage foreign companies to use American-made metals.

The measures partly reflect requests from South Korea and other tariff-agreement partners. Seoul had been pressing Washington to reduce Section 232 tariffs through high-level consultations since the two sides reached a tariff agreement last year.

Some analysts also suggest the Trump administration lowered tariffs on agricultural machinery with an eye on farmers — a core constituency — ahead of the November midterm elections.

"The export items expected to benefit from this tariff reduction are estimated at around $2.3 billion," a ministry official said, adding that the government plans to work closely with relevant industries to review the specifics and their impact.