"We now have 50,000 vehicles per manufacturer cap, doubling the exporting opportunity for our producers and their workers," the official said on Tuesday evening. "This is for vehicles that meet US safety standards and allowed to enter the Korean market on that basis."
Previously, there was a 25,000 per manufacturer per year cap on vehicles from the United States that could be accepted in South Korea under US safety standards.
The deal also maintains a 25 percent tariff on pickup trucks slated to expire by 2021, which would have meant the United States losing pickup truck production to other countries, the official said. Now the tariff will not expire until 2041, the official added.
The deal will subject South Korea to a 10 percent tariff on aluminum. However, on steel, the country will be subject to a product-specific quota equivalent to 70 percent of the average annual export volume for the steel products based on a three year average from 2015 to 2017, the official also said.
The steel quota will result in a significant 30 percent reduction in South Korean steel shipments to the United States, the official added.