The South Korean government is set to announce emergency measures next month to address the U.S. administration's proposed tariffs on all imported vehicles, aiming to minimize the negative impact on the domestic automotive industry, according to Industry Minister Ahn Duk-geun, Yonhap reported.
In an emergency meeting held with local car manufacturers, including Hyundai Motor Co. and Kia Corp., the Minister discussed the potential challenges posed by the tariffs, which were outlined following a proclamation by former President Trump to impose a 25% tariff on all imported cars, light trucks, and key auto parts such as engines and transmissions.
Minister Ahn expressed concern that the tariffs could severely affect South Korean automotive exports, noting that the government would continue negotiating with the U.S. to reduce the damage to local car manufacturers.
In 2024, South Korea exported $34.7 billion worth of automobiles to the U.S., which represented nearly half of the country’s total auto exports.
Hyundai and Kia combined exported 970,000 cars to the U.S. last year, while GM Korea, the local arm of General Motors, shipped 410,000 cars to the U.S., making up 85% of its total overseas sales.
The news of the tariff plan has had a noticeable impact on South Korean carmakers, with shares of Hyundai and Kia dropping by 3.83% and 2.96%, respectively.