Trump-Triggered Auto Tariff Shock... Government to Announce Emergency Measures Next Month

"We Will Also Consult With the U.S. Government"

As the United States has decided to impose a high tariff of 25% on imported automobiles, our government plans to prepare and announce an emergency response plan for the automotive industry next month to minimize damage to the industry.

On the afternoon of the 27th, Ahn Deok-geun, Minister of Trade, Industry and Energy, stated at an emergency public-private joint meeting held at the Korea Chamber of Commerce and Industry in Seoul, "We are concerned that the U.S. government's tariff imposition will cause significant difficulties for our automobile companies' exports to the U.S.," adding, "The government plans to prepare and announce an emergency response plan for the automotive industry within April."

Earlier, on the 26th (local time), the U.S. government announced that it would impose a 25% tariff on imported automobiles (including light trucks) and major automobile parts based on Section 232 of the Trade Expansion Act. Accordingly, automobiles will be subject to tariffs starting April 3, and parts will be included before May 3.

The government is concerned that this measure will have a serious impact on the domestic automotive industry. In particular, 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. Small and medium-sized parts suppliers are also expected to face difficulties, and there are concerns about a chain reaction of damage due to disruptions in the global supply chain.

At the emergency meeting, the government discussed the impact on and countermeasures for our automobile and automobile parts industries. Minister Ahn said, "We will closely cooperate with the industry to strengthen our response measures," and added, "We also plan to actively consult with the U.S. government to minimize damage to our industry."