The United States has agreed to lower sectoral tariffs on imports of South Korean automobiles, auto parts, timber, lumber, and wood derivatives to 15 percent, following a bilateral summit last month.

Still, the joint fact sheet announced on Thursday, local time, did not specify when the Donald Trump administration would lower the rate on automobiles and auto parts from the current 25 percent.

Washington will apply the higher of the bilateral free trade agreement(FTA) or U.S. most favored nation(MFN) rate, or 15 percent on other originating goods from South Korea under the Trump administration's Executive Order 14257 of April 2, 2025.

The U.S. said the sectoral tariffs on pharmaceuticals, which it has yet to finalize, would not be greater than 15 percent.

It intends to provide terms for tariffs on semiconductors that are no less favorable than those that may be offered in Washington's future deal with other countries whose semiconductor trade volume with the U.S. is considered to be at least as large as South Korea's.

Meanwhile, Seoul has pledged 200 billion U.S. dollars in strategic investments on American soil, and the two sides are expected to sign a relevant memorandum of understanding(MOU).

Seoul also promised to invest 150 billion dollars into the American shipbuilding industry, with an annual investment cap of 20 billion dollars in consideration of the potential impact on the country's foreign exchange market stability.