WASHINGTON (Bloomberg) -- The United States and South Korea reached an agreement to change automobile provisions in a pending trade deal, winning support from Ford Motor Co. and lawmakers.
Under the terms of the reworked deal, the United States will end its 2.5 percent tariff on automobiles in five years, instead of immediately or after three years as was previously agreed. Korea will cut its 8 percent tariff on U.S. automobile imports to 4 percent immediately, instead of eliminating it entirely, according to a White House fact sheet.
The United States will also keep its 25 percent tariff on truck imports for eight years instead of beginning to phase it out immediately. And South Korea said it would allow more imports of U.S.-made vehicles that meet American standards and not Korean rules.
“These new provisions provide Ford greater confidence that we will be able to better serve our Korean customers,” Ford CEO Alan Mulally said in an e-mailed statement.