Korea Responds to US Automotive Tariffs

In response to the United States’ recent imposition of a 25% tariff on imported vehicles, the South Korean government is preparing to launch emergency support measures for its automotive industry. The Ministry of Trade, Industry and Energy convened an urgent joint public-private meeting earlier today to assess the potential ramifications of these tariffs on Korean auto exports.

Government and Industry Unite to Counteract Tariff Impact

Ahn, a senior official from the Ministry, expressed concerns regarding the impact of the tariffs on exports to the US. We are concerned about the export of the US by imposing tariffs, Ahn stated. The government will work closely with the industry to take countermeasures, while preparing for the automotive industry emergency measures in April with related ministries.

The meeting saw participation from key figures, including Minister Ahn and the Director of Trade and Negotiation Division, alongside representatives from major automotive players such as Hyundai Motor, kia, Mando, Hyundai Mobis, In Pack, the Korea Automobile Manufacturers association (KAMA), and the Korea Auto industries Coop. Association (KAICA).Discussions centered on mitigating the effects of the US tariffs, which target passenger cars, light trucks, and essential auto parts, including sedans and minivans.

Tariff Details and Implementation Timeline

The tariffs encompass a wide range of automotive components,including engines,engine parts,transmissions,powertrain components,and electronic components. A comprehensive list of affected items is expected to be released shortly. The tariffs are slated to take effect on passenger vehicles starting april 3rd, with tariffs on automotive parts following before May 3rd.

Investment Pledges and Tariff Exemptions

Earlier this week, Hyundai Motor Group announced a substantial investment of ₩31 trillion (approximately $23 billion USD) in the United States. However, this investment did not guarantee a separate tariff exemption, leaving the company vulnerable to the new import duties. This situation highlights the complex interplay between foreign investment and trade policy.