Last updated: January 27, 2026, 1:30 PM EST
⚠️ Breaking News Alert: This article reflects the tariff situation as of January 27, 2026. U.S. trade policy is changing quickly. Always verify current rates with U.S. Customs or a licensed customs broker before finalizing import decisions.
Tariffs on South Korean cars have become a moving target since 2025, and the last few days have added headline risk on top of an already complex structure. Several major outlets report that President Donald Trump intends to raise duties on South Korean auto imports back to 25%, but formal implementation steps are still pending. For vehicle exporters, importers, and logistics planners, the priority is understanding what is legally in force now, what has been threatened, and how to plan shipping around that uncertainty.
This article distills current, verifiable information and clearly labels areas where policy is still in flux. For broader context on Section 232 auto policy and global car duties, you can cross‑reference the WCS guides on global car import taxes and Trump’s 25% tariff on imported cars.
Since 2025, U.S. auto tariffs have been reshaped by a Section 232 national‑security framework that raised duties on many imported vehicles, including Korean cars.
As of late 2025, South Korean vehicles benefited from a negotiated reduction to a 15% U.S. tariff rate, tied to a broader investment understanding between Washington and Seoul.
On January 26–27, 2026, President Trump publicly threatened to restore a 25% tariff on South Korean autos, but formal legal instruments to implement that increase had not yet been published when this article was updated.
The EU–South Korea FTA and the UK–South Korea trade agreement continue to provide zero‑tariff entry for qualifying Korean vehicles into Europe and the UK, with non‑qualifying cars facing standard EU/UK MFN rates.
For importers and shippers, the most practical approach is to treat 25% as a credible near‑term risk in the U.S., while recognizing that customs will apply the rate that is actually in effect on the date of import clearance.
Under the Korea–U.S. Free Trade Agreement (KORUS), qualifying South Korean vehicles enjoyed essentially duty‑free access to the U.S. for roughly a decade. That status changed in 2025 when a new Section 232 national‑security initiative extended a 25% duty on most imported vehicles from non‑exempt origins.
WCS’s own 2025 policy overview on importing a vehicle into the United States describes how Section 232 measures layered on top of pre‑existing 2.5% car duties and “baseline” reciprocal tariffs in some cases, pushing effective rates well above what KORUS had originally provided.
Trade reporting in late 2025, reflected in outlets tracked by WCS and summarized in internal pieces like Trump tariff delays ease auto markets, indicates that:
The U.S. agreed to set a 15% auto tariff on South Korean vehicles, effective November 1, 2025, down from the 25% Section 232 level.
The change was part of a broader understanding under which South Korea would advance legislation for a large, multi‑year U.S. investment package often described in media as being in the hundreds of billions of dollars.
Different outlets describe the size and breakdown of that investment pledge in slightly different ways, so the exact dollar amounts should be treated as indicative political figures rather than precise legal commitments.
Multiple major news organizations report that on January 26, 2026, President Trump publicly stated his intention to raise tariffs on South Korean imports, including autos, back to 25% because the Korean legislature had not moved fast enough on the trade deal.
Key points from that coverage:
The president’s remarks explicitly referenced autos, lumber, pharmaceuticals, and other goods, and the number 25% was cited as the intended rate on vehicles.
South Korean news outlets and economic ministries responded by announcing emergency trade consultations and accelerated diplomatic outreach to Washington.
As of the latest updates in those stories, no formal presidential proclamation, Federal Register notice, or Customs guidance had yet put the 25% rate into legal effect.
For compliance purposes, this means that while markets are reacting to the threat, the enforceable rate remains the one codified in the most recent legal instruments until new documents are issued.
Unlike the U.S., Europe’s tariff framework for South Korean vehicles has remained relatively stable:
The EU–South Korea Free Trade Agreement has provided zero‑tariff access for qualifying Korean vehicles since 2011, assuming rules‑of‑origin requirements are met.
The UK–South Korea trade agreement, upgraded in late 2025, maintains zero tariffs on qualifying Korean vehicles and reduces required domestic value content to around 25% for certain categories, particularly to support electric vehicles that may source battery components globally.
For non‑qualifying imports, the UK Global Tariff continues to apply a 10% MFN duty on standard passenger cars, similar to EU MFN rates for non‑FTA‑eligible vehicles.
For Korean OEMs, this makes the EU and UK comparatively attractive export outlets when U.S. tariffs climb, particularly for models not yet built in North America.
Even with some policy elements still in motion, several implications are clear for businesses that move Korean vehicles internationally.
A shift from a 15% to a 25% U.S. tariff on a Korean‑built vehicle with a CIF value of $36,500 would:
Increase duty from $5,475 to $9,125.
Raise unit landed cost before domestic fees from roughly $41,975 to $45,625.
For a container carrying multiple vehicles, that difference can easily reach six figures in additional duties, forcing importers and dealers either to compress margins or to push retail prices higher.
Korean brands have already been adapting by:
Expanding North American production, particularly at Hyundai and Kia plants in the U.S., to supply the American market with vehicles that are not treated as Korean imports.
Maintaining Korea‑built export flows into Europe and the UK under FTA preferences, where tariff risk is lower and more predictable.
That split production strategy means importers and fleet buyers must pay close attention to origin by VIN and model, not just brand, when modeling their tariff exposure.
With tariffs playing such a central role, customs authorities are likely to continue tightening their review of:
HS code classification for finished vehicles and parts.
Origin documentation and rules‑of‑origin calculations for FTA claims.
Customs value declarations, especially where transfer pricing or bundled incentives are involved.
As WCS has noted in prior pieces such as global tariff negotiations and auto logistics strategies, this is not the time to rely on outdated duty assumptions or informal rules‑of‑thumb.
For logistics planners and shippers, South Korean auto tariffs are now a risk variable on par with fuel surcharges or port congestion. They directly influence route selection, timing, and container strategy.
Route choice:
High U.S. duties create an incentive to divert some Korean production toward EU and UK ports that still offer zero‑tariff entry for compliant vehicles, while U.S. demand is met increasingly from North American plants.
Timing and arrival windows:
Because tariffs apply on the date of import clearance, not at loading, shippers must consider whether vessels already at sea could arrive under a different tariff regime than the one in place at booking. WCS has covered similar timing risk in analyses like 90‑day tariff pause impact.
Scenario‑based planning:
Many importers are now building parallel landed‑cost models—one assuming 15% duty, another assuming 25%—and using conservative pricing and inventory decisions until the legal rate is clear.
Throughout, a logistics partner cannot change tariffs, but it can help ensure that HS codes, origin data, and documentation are aligned so that whatever the prevailing rate is, it is applied correctly and without avoidable delays.
If you are evaluating shipments of Hyundai, Kia, Genesis, or other Korean‑built vehicles in this shifting environment, you will need both accurate freight quotes and conservative duty assumptions. Use West Coast Shipping’s tools—such as the cost breakdowns in the global guide to car import taxes and the company’s route‑specific articles—to benchmark your lane options, then speak with your customs broker about the latest U.S. and FTA tariff rates before booking space.
When you are ready to run numbers on specific routes and transit times, use the WCS shipping calculator to generate current ocean freight estimates and build them into your tariff and landed‑cost scenarios.