Tariffs, costs & compliance compared — so you can make the right sourcing call.
| Factor | 🇰🇷 South Korea | 🇯🇵 Japan |
|---|---|---|
| US Trade Rank | #6 | #5 |
| Annual US Imports | $115B | $148B |
| Trade Agreement | ✓ KORUS | ✓ USJTA |
| Avg Duty Rate | 0% (KORUS qualifying) | 1.8% average MFN |
| Section 301 Surcharge | ✓ None | ✓ None |
| Section 232 (Steel/Alum) | ⚠ Korean steel exempt from 25% S | ⚠ Japanese steel subject to 25% |
| Compliance Complexity | ● Low Complexity | ● Low Complexity |
| Ocean Transit to US | 12–18 days (ocean) | 12–20 days (ocean) |
Trade Agreement: KORUS FTA (0% most goods)
MFN Status: KORUS FTA Partner
Transit to US: 12–18 days (ocean) · 3–5 days (air)
Main Ports: Busan, Incheon
Busan is a major transhipment hub. KORUS FTA simplifies documentation.
Rules of origin verification is critical. Korean steel under quota system — excess quota triggers 25% Section 232.
Full South Korea Profile →Trade Agreement: US-Japan Trade Agreement (partial)
MFN Status: USJTA Partner (limited)
Transit to US: 12–20 days (ocean) · 3–5 days (air)
Main Ports: Tokyo/Yokohama, Osaka, Kobe, Nagoya
Efficient operations with minimal port congestion. Close Pacific routing to US West Coast.
Auto sector not covered by USJTA. 25% Section 232 steel duties apply with quota. Electronics generally duty-free under ITA.
Full Japan Profile →Based on $50,000 FOB product value. Duty rate reflects typical electronics treatment. Freight is estimated ocean FCL. Actual costs vary by HTS code, Incoterms, carrier, and shipment size.
| Cost Component | 🇰🇷 South Korea | 🇯🇵 Japan |
|---|---|---|
| FOB Product Value | $50,000 | $50,000 |
| Customs Duties (0% FTA) | Free ($0) | Free ($0) |
| Est. Ocean Freight | $4,000 | $4,000 |
| MPF + HMF (US Fees) | $236 | $236 |
| Total Estimated Landed Cost | $54,236 | $54,236 |
Cost differences become more pronounced for products with higher duty exposure. Run your specific product HTS code to see real savings.
Your HTS code, shipment size, and Incoterms make a big difference. Get a precise cost breakdown for South Korea vs Japan in under 60 seconds.
KORUS Certificate of Origin required. Korean-made vehicles qualify for 0% under KORUS. Strong rules of origin apply.
USJTA covers agriculture and select industrial goods — not comprehensive. Vehicles remain at 2.5% MFN.
Accurate country-of-origin marking (19 CFR Part 134), proper HTS classification, CBP entry filing, and applicable agency certifications (FDA, USDA, EPA, CPSC depending on product). Work with a licensed customs broker to confirm requirements for your specific goods.
The right sourcing decision depends on your product category, HTS classification, shipment volume, and tolerance for compliance complexity. Here's the key decision logic:
Overall landed cost depends on your specific product, HTS classification, shipment size, and freight costs. South Korea has an average duty rate of 0% (KORUS qualifying) vs Japan's 1.8% average MFN. Run your product through the calculator for precise numbers.
Both countries have trade agreements with the US. South Korea benefits from KORUS (KORUS FTA (0% most goods)) and Japan benefits from USJTA (US-Japan Trade Agreement (partial)). The better deal depends on your product category and whether it qualifies under each agreement's rules of origin.
South Korea is NOT subject to Section 301 tariffs. Japan is NOT subject to Section 301 tariffs. For steel and aluminum: South Korea faces Section 232 steel/aluminum duties: Korean steel exempt from 25% Section 232 under quota agreement. Japan faces Section 232 steel/aluminum duties: Japanese steel subject to 25% Section 232 (quota arrangements in place).
For electronics, both South Korea and Japan are generally subject to standard MFN rates. Most electronics (HTS Chapter 84, 85) carry 0% MFN duties under the Information Technology Agreement. The real differentiators are compliance complexity (Low for South Korea vs Low for Japan), logistics lead times, and supplier quality.
South Korea: KORUS Certificate of Origin required. Korean-made vehicles qualify for 0% under KORUS. Strong rules of origin apply. Japan: USJTA covers agriculture and select industrial goods — not comprehensive. Vehicles remain at 2.5% MFN. Both origins require accurate country-of-origin marking (19 CFR Part 134) and proper HTS classification. Consult a licensed customs broker for origin-specific requirements.
Tariff comparisons sourced from USITC HTS Schedule and USTR Section 301 lists as of 2026-04-07. Sample landed cost figures are illustrative estimates only — actual costs depend on HTS classification, Incoterms, carrier rates, and current trade policy. Section 301 product lists, trade agreement rules of origin, and duty rates change frequently. Verify all rates with a licensed customs broker before making sourcing decisions. AI-assisted analysis — not legal or customs advice.