The U.S. Department of Commerce announced on Tuesday that the Donald Trump administration has issued a proclamation revising tariffs under Section 232 of the Trade Expansion Act. This revision will reduce tariffs on forklifts, bulldozers, and tractors exported from South Korea from 25% to 15%.
Section 232 of the Trade Expansion Act empowers the U.S. President to impose high tariffs or restrict imports if foreign products are deemed to threaten national security.
Under this new proclamation, certain mobile industrial machinery, including forklifts, bulldozers, and tractors, will see tariffs reduced to 15% when imported from countries like South Korea that have reached tariff agreements with the U.S. For other countries, the existing 25% tariff will remain in effect.
Agricultural equipment and heating, ventilation, and air conditioning (HVAC) systems, which previously faced a 25% tariff, will now be subject to a 15% tariff across the board, regardless of any tariff agreements.
These tariff reductions will be in effect from June 8, until December 31, 2027.
The U.S. has also eased requirements for items eligible for a lower 10% tariff, reducing the threshold for American steel content from 95% to 85%.
Aluminum printing plates and metal racks, previously exempt from Section 232 tariffs, will now be subject to a 25% tariff.
The South Korean government has been advocating for reduced Section 232 tariffs through high-level discussions to support Korean companies’ exports and investments in the U.S.
The Ministry of Trade, Industry and Energy estimates that the expected tariff reductions will affect approximately 2.3 billion USD worth of exports to the U.S. The ministry plans to continue diplomatic efforts with the U.S. while closely monitoring developments related to various trade measures, including Section 301 investigations, Section 122 tariffs, and Section 232 tariffs. These efforts aim to minimize impacts on South Korean companies and maintain the balance of benefits under existing U.S.-Korea trade agreements.