In a statement posted on X, Lutnick said that the move unlocks the “full benefit” of South Korea’s trade deal with President Donald Trump.

“In response, the US will lower certain tariffs under the deal – including auto tariffs – to 15%, effective Nov 1.

“We are also removing tariffs on airplane parts and will ‘un-stack’ Korea’s reciprocal rate to match Japan and the EU,” he said.

The bilateral trade deal also caps any future national security tariffs on semiconductors and pharmaceuticals at 15%, putting South Korea on an equal footing with key Asian rivals Japan and Taiwan.

The US previously levied a 25% tariff on imports from South Korea, including national security-related autos duties invoked under Section 232 of the Trade Expansion Act of 1962 and “reciprocal” tariffs invoked under the International Emergency Economic Powers Act of 1977.

The US Supreme Court could overturn the IEEPA-based tariffs in coming weeks after casting doubt on the legal basis of them during oral arguments in early November.

The South Korean ruling party’s legislation aims to make good on Seoul’s agreement to invest US$350 billion into strategic industries in the US, including shipbuilding.

“Korea’s commitment to American investment strengthens our economic partnership and domestic jobs and industry,” Lutnick said, adding that he was “grateful for the deep trust between our two nations”.