In response to changes in the trade environment with the United States, such as tariff imposition by U.S. President Donald Trump, the domestic automobile industry has launched a private-sector-led task force (TF).
The Korea Automobile Mobility Industry Association (KAMA) launched the U.S. Trade Policy TF and held its first meeting on the 3rd at the Automobile Hall in Seocho-gu, Seoul.
The TF includes 10 related companies and organizations, such as Hyundai Motor Group, a leading domestic automaker, the Korea Automobile Industry Cooperative, the Korea Institute for Industrial Economics and Trade, and the Korea International Trade Association.
At the closed-door meeting, discussions reportedly covered the current status of automobile policies following the inauguration of the second Trump administration, as well as analyses of the impact of U.S. tariffs imposed on Canada, Mexico, and China on exports and local production subsidiaries. Additionally, the repercussions of the Trump administration's withdrawal of eco-friendly vehicle policies, including the abolition of subsidies under the Inflation Reduction Act (IRA), were also addressed.
Currently, exports to the U.S. account for 47.5% of automobile exports. Regarding this, attendees agreed on the need to expand local production, diversify export destinations, and actively promote local investment, according to a TF official. Going forward, the TF plans to establish a roadmap to respond to the Trump administration's automobile and trade policies and strengthen support for automakers and parts suppliers accordingly.
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