Korean exporters selling to the US after the 2025 tariff agreement
Korea's car makers and chip giants dominate the headlines, but thousands of Korean SMEs export cosmetics, food, components and machinery to the US. A 2025 agreement set a 15 percent tariff on most Korean goods. For smaller exporters, that reshaped price talks with American buyers.
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A Seongnam skincare brand sells through a US distributor in New Jersey. In 2025 the distributor paused reorders while US tariffs on Korean goods were set and reset. After the two governments agreed a 15 percent rate for most Korean goods, orders resumed, with the distributor asking the brand to absorb part of it.
The tariff
The KORUS free trade agreement still exists, but in 2025 the US applied additional tariffs to Korean goods. An agreement between the two governments settled the rate at 15 percent for most products. Some sectors, including certain autos, steel and semiconductors, are covered by separate measures. Your HS code decides; check with a customs broker.
Who pays
The US importer of record pays duty. For most Korean SMEs selling FOB or FCA, that is the US buyer. In practice, buyers now negotiate price to share the cost.
Price in dollars
US distributors price and budget in dollars. Korean SMEs pricing in won push currency risk onto buyers already carrying a tariff. Pricing in dollars and holding dollars lets the exporter convert to won when it suits.
Terms
- Deposits from new or slower buyers.
- Balances on clear terms from arrival.
- Letters of credit for large orders.
- Credit limits per buyer.
Records and proceeds
Korean exporters receive proceeds through Korean banks under foreign exchange rules. Keep export declarations, invoices and payment records together.
Paying into South Korea: the local rail
| What | Detail |
|---|---|
| Local rail | Interbank transfers through KFTC's electronic banking network |
| Run by | Korea Financial Telecommunications and Clearings Institute |
| Settlement | Seconds, 24/7 |
Source: KFTC. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet opens business accounts for registered companies after verification. A Korea-registered exporter should follow Korean foreign exchange reporting rules before receiving funds abroad. Korean companies' US subsidiaries can use a Rivet business account with US account details on every plan, Visa company cards and payouts in 120+ countries. Rivet is not a bank; regulated partner institutions hold the funds.
Questions people ask
What tariff applies to Korean goods in the US?
Under the 2025 arrangement, most Korean goods face 15 percent. Some products, such as certain autos, steel and semiconductors, are covered by separate measures. Check your HS code.
Did KORUS stop applying?
The KORUS free trade agreement remains, but the US applied additional tariffs on top of it under its 2025 trade measures, settled at 15 percent for most goods by the agreement.
Who pays the tariff?
The importer of record, usually the US buyer on FOB or FCA terms.
How can SMEs protect margins?
Negotiate how the tariff is shared, price in dollars, take deposits from new buyers, and use letters of credit for large orders.
Sources
Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.
More from Rashidatou K. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- south korea
- exports
- us tariffs
- k-beauty
- usd
- payment terms
