Trump's 25% tariff puts pressure on South Korean automakers
Time:Wed, 02 Apr 2025 09:01:00 +0800
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Following Trump's announcement of a 25% tariff on all imported vehicles, South Korean automakers, particularly Hyundai Motor Group and GM Korea, face a decline in US exports. This tariff, effective April 2, applies to both fully assembled vehicles and key auto parts.
South Korea's auto exports to the US were valued at US$34.74 billion last year, accounting for 49.1% of its global auto exports. Hyundai and its subsidiary Kia shipped 970,000 units, while GM Korea sent 410,000, making up 84% of its exports.
Experts believe the tariff may last a few months, as maintaining it long-term could disrupt supply chains and raise car prices in the US.
GM Korea, heavily reliant on US exports, may reconsider its presence in South Korea, potentially impacting local part suppliers.
