President Trump Unveils New Trade Frameworks and Strengthens South Korea Deal

On Thursday, November 13, the United States announced frameworks for agreements on reciprocal trade with Argentina, Ecuador, El Salvador, and Guatemala, as well as with Switzerland and Liechtenstein. The United States and South Korea also reaffirmed the Korea Strategic Trade and Investment Deal in a White House Fact Sheet released the same day. 

Argentina, Ecuador, El Salvador, and Guatemala: 

• The United States will remove reciprocal tariffs on Annex III products. In El Salvador and Guatemala, the United States will also remove the reciprocal tariffs from certain products, such as textiles and apparel products, originating under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA).
• Negotiations for these frameworks are ongoing, and documents have not yet been published.

Switzerland and Liechtenstein:

• The United States will remove reciprocal tariffs (under the International Emergency Economic Powers Act) on certain goods listed in Annex III, also called the Potential Tariff Adjustments for Aligned Partners (PTAAP) list.
• For goods from Switzerland and Liechtenstein, the United States will apply the higher of the normal Most Favored Nation tariff or a combined 15% tariff (the Most Favored Nation tariff plus a reciprocal tariff).

South Korea: 

• The United States will reduce its Section 232 sectoral tariffs on automobiles, auto parts, timber, lumber, and wood derivatives to 15%.
  • For such products of South Korea with a U.S.-Korea Free Trade Agreement (KORUS FTA) or Most Favored Nation tariff rate, as applicable, equal to or greater than 15 percent, no additional Section 232 tariff shall apply.
• The United States will remove the International Emergency Economic Powers Act reciprocal tariffs for certain goods included in Annex III, also known as the list of Potential Tariff Adjustments for Aligned Partners (PTAAP), as well as certain aircraft and parts.
• Official implementation documentation has not been published. 

Please contact RV Industry Association Director of Federal Affairs Samantha Rocci at srocci@rvia.org with any questions, and keep up with the latest tariff updates here.