SEOUL (Reuters) -South Korea’s auto sector is expected to face “considerable difficulties” when U.S. import tariffs on cars announced by President Donald Trump take effect and the government plans an emergency response by April, the industry minister said. South Korea will also actively engage the U.S. government to explore measures to minimise the negative impact […]
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South Korea plans emergency response over US tariffs on autos
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SEOUL (Reuters) -South Korea’s auto sector is expected to face “considerable difficulties” when U.S. import tariffs on cars announced by President Donald Trump take effect and the government plans an emergency response by April, the industry minister said.
South Korea will also actively engage the U.S. government to explore measures to minimise the negative impact on South Korea’s auto companies and suppliers, Industry Minister Ahn Duk-geun told a meeting with industry officials on Thursday.
“Global uncertainties are growing but South Korean auto companies will not be fighting alone,” Ahn said. The government will consider financial assistance, investment support, and help with market diversification, Ahn said.
Parts suppliers are expected to be hit particularly hard, the minister said.
Trump unveiled a 25% tariff on imported vehicles, prompting criticism and threats of retaliation from countries affected by the move.
Shares in South Korea’s Hyundai Motor shed more than 4% and sister automaker Kia Corp fell more than 3% after Trump’s announcement. Hyundai Motor shares are set to post their biggest daily drop since late Oct 2024.
Hyundai together with affiliate Kia is the world’s third-largest automaker by sales.
In 2024, South Korea’s exports of automobiles to the United States stood at $34.7 billion, accounting for 49% of its total auto exports.
(Reporting by Jack KimEditing by Ed Davies)