Government Urgently Responds to Trump's Auto Tariff Decision... Public-Private Countermeasure Meeting Today

Emergency Public-Private Joint Countermeasure Meeting
Led by Minister Ahn Duk-geun at 2 p.m.

Yonhap News

As U.S. President Donald Trump has decided to impose a high tariff of 25% on imported automobiles, our government is also taking action by holding an emergency public-private joint countermeasure meeting.

According to the Ministry of Trade, Industry and Energy on the 27th, Minister Ahn Duk-geun will convene a public-private joint countermeasure meeting at 2 p.m. that day, gathering officials from related ministries and the automobile industry.

Earlier, on the 26th (local time), President Trump announced at a White House briefing, "To protect domestic manufacturing and increase tax revenue, we will impose a 25% tariff on all imported automobiles and parts." The tariff is scheduled to take effect from April 2, and major automobile exporting countries including Korea, the European Union, and Japan will be directly hit.

The government is concerned that this measure will have a serious impact on the domestic automobile industry. Hyundai Motor and Kia have a high export ratio to the U.S. market, and export losses amounting to trillions of won annually are expected. In particular, small and medium-sized parts suppliers are worried not only about blocked export routes but also about chain damages caused by disruptions in the global supply chain.

Previously, KB Securities projected in a report that even if the U.S. imposes only a 10% tariff on Korean automobiles, Hyundai Motor and Kia’s annual operating profit could decrease by about 4.3 trillion won. If the tariff rises to 25%, the damage could reach tens of trillions of won.

At today’s meeting, the government is expected to discuss plans to expand local production in the U.S., measures to minimize damage to small and medium-sized parts suppliers, and diplomatic responses through trade channels with the U.S.

An official from the Ministry of Trade, Industry and Energy said, "This tariff measure goes beyond a simple trade issue and could affect the entire industry," adding, "The public and private sectors will respond swiftly together to minimize damage."