Price Competitiveness Weakens Due to 25% Tariff...
North American Exports Down 8%
Record-High Overall Performance Driven by Surge in EU Electric Vehicle Exports
Although the domestic automobile industry continued its overall export growth in August and set a new all-time high, exports to the United States recorded a double-digit decline due to the impact of the 25% tariff.
According to the "Automobile Industry Trends for August 2025" released by the Ministry of Trade, Industry and Energy on the 16th, automobile exports in August reached 5.5 billion dollars, up 8.6% from the same month last year, marking the highest August figure ever. However, exports to the United States fell to 2.097 billion dollars, a decrease of 15.2% year-on-year, and total exports to North America dropped by 8.3% to 2.554 billion dollars.
For the cumulative period from January to August, exports to the United States declined by 15.1% to 20.2 billion dollars, while total North American exports fell by 12.6% to 24 billion dollars. The industry cites the Trump administration's imposition of a 25% high tariff as the key reason for the sluggish exports to the United States. In fact, the U.S. has imposed additional tariffs on Korean-made vehicles this year, causing a sharp decline in local price competitiveness.
The weak performance in the U.S. market was offset by strong electric vehicle exports to Europe. In August, exports to the European Union, led by Germany (160 million dollars, up 118.7%) and Spain (140 million dollars, up 54.5%), reached 792 million dollars (up 54.0%). Other European markets, including the United Kingdom and T?rkiye, also saw a sharp increase to 547 million dollars (up 73.2%).
Electric vehicle exports surged to 23,000 units (up 78.4%), with the EV3 and Casper Inster leading the strong performance in the European market.
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