South Korea is allowing the United States to extend its 25 percent tariff on imports of pickup trucks from the country to 2041, as part of the two countries’ agreement to modernize the U.S.-Korea Free Trade Agreement (KORUS), after those tariffs had been set to expire in 2021, South Korea’s Ministry of Trade, Industry and Energy said in a statement.
South Korea currently does not export pickup trucks to the U.S.
In addition, South Korea will allow U.S. automakers selling fewer than 50,000 units per year in South Korea - up from 25,000 - to be exempt from the nation’s safety standards as long as they meet U.S. safety standards, the statement said.
South Korean Trade Minister Kim Hyun-chong on Monday announced that the two countries had finished KORUS modernization discussions, which started in July.
The Office of the U.S. Trade Representative declined to comment on KORUS.