US President Donald Trump's administration reduced tariffs on automobiles from the European Union to 15 percent, a government notice showed Wednesday, while tariffs on Korean cars remain at 25 percent amid negotiations to hash out details of a bilateral trade deal struck in late July.

On the Federal Register, the International Trade Administration under the Commerce Department and the Office of the US Trade Representative posted the notice outlining the tariff reduction retroactive to Aug. 1. EU cars were previously subject to a total rate of 27.5 percent.

The lowering of the tariff -- as agreed upon under a bilateral trade deal -- came after the Trump administration started applying a lowered tariff of 15 percent to auto imports from Japan on Sept. 16.

The reduction from the previous 27.5 percent -- the rate consisting of a 25 percent sector-specific tariff and prior levies of 2.5 percent -- could put South Korean auto exports at a disadvantage, as they are still subject to a 25 percent tariff.

The US has also agreed to lower the tariff on South Korean autos to 15 percent as part of the trade deal, but it remains uncertain when the deal will go into force amid an impasse over details of South Korea's $350 billion investment package pledged under the deal.

The US is a top auto export market for South Korea.

Of South Korea's total car exports last year, exports to the US totaled $34.7 billion, or 49.1 percent. Hyundai Motor Group and GM Korea exported around 970,000 and 410,000 units to the US, respectively, last year. (Yonhap)

This photo, taken on Sept. 16, 2025, shows cars waiting to be loaded onto a ship at a port in Pyeongtaek, some 65 kilometers south of Seoul. (Yonhap)
This photo, taken on Sept. 16, 2025, shows cars waiting to be loaded onto a ship at a port in Pyeongtaek, some 65 kilometers south of Seoul. (Yonhap)