Automobile Industry: "Very Positive About Tariff Deal... Grateful for Trade Diplomacy Efforts"

Expectations for Policies to Secure Domestic Production Competitiveness

The automobile industry has responded very positively to the conclusion of the Korea-US tariff negotiations, stating that the uncertainty in the export environment has disappeared.

On July 31, the Korea Automobile Mobility Industry Association issued a statement saying, "The United States is our main export market, accounting for more than 50% of our 2.78 million vehicle exports. With the conclusion of these tariff negotiations, our country is now able to compete on equal terms with Japan and the EU."

The association commented, "We welcome the reduction of the 25% high automobile tariff, which has been applied since April, to 15%, the same level as competing countries such as Japan and the EU. We are grateful for the government's all-out trade diplomacy efforts that led to this negotiation result."

The association went on to emphasize, "Building on the government's trade negotiation results, we will strive to enhance competitiveness and achieve sustainable growth through technology development and productivity improvement. We will also use this as an opportunity to expand our market share in the US, diversify export markets, and accelerate the transition to future vehicles."

They added, "The government’s active attention is needed so that tariffs on automobiles and parts can be applied in export markets as soon as possible. We also hope for policy support from the government, such as the introduction of a domestic production tax credit, to help the automobile industry secure competitiveness in domestic production."

Hyundai Motor Group also stated on the same day, "We deeply appreciate the dedicated efforts of all government ministries and the National Assembly to resolve the US tariff issue. While pursuing various measures to minimize the impact of tariffs, we plan to further strengthen our fundamentals through enhanced quality, brand competitiveness, and technological innovation."