Washington: U.S. President Donald Trump announced on Thursday that he may raise tariffs on imported cars “in the not-too-distant future.” This statement was made during a bill signing ceremony at the White House, where Trump emphasized the new 25 percent levies as a strategy to protect American autoworkers.
According to Yonhap News Agency, Trump’s remarks have raised concerns about the impact of these tariffs on South Korea’s economy, which heavily relies on trade. South Korea is actively seeking exemptions from these auto tariffs in ongoing trade negotiations with the U.S., as the country is significantly dependent on the American auto export market.
Hyundai Motor Group and GM Korea were major contributors to South Korea’s car exports to the U.S. last year, with approximately 970,000 and 410,000 units exported, respectively. In total, South Korea’s car exports to the U.S. amounted to $34.7 billion, representing 49.1 percent of its overall car exports. The potential increase in auto tariffs could prompt foreign automakers to consider building plants in the U.S., aligning with Trump’s goal to boost American manufacturing.