South Korea's Minister of Industry, Ahn Duk-geun, said his country’s auto sector is expected to face considerable difficulties when U.S. import tariffs on cars, announced by President Donald Trump, take effect.
He also stated that the government plans an emergency response by April.
The minister made this statement at a meeting with industry officials on Thursday, stressing that South Korea will actively engage with the U.S. government to explore measures to minimize the negative impact on South Korean auto companies and suppliers.
“Global uncertainties are growing, but South Korean auto companies will not be fighting alone. The government will consider financial assistance, investment support, and help with market diversification. Parts suppliers are expected to be hit particularly hard,” the minister said.
Trump unveiled a 25% tariff on imported vehicles, sparking criticism and threats of retaliation from affected countries.
Shares in South Korea's Hyundai Motor shed more than 4%, while sister automaker Kia Corp fell more than 3% after Trump's announcement.
Hyundai Motor shares are set to post their biggest daily drop since late October 2024.
Hyundai, together with affiliate Kia, is the world's third-largest automaker by sales.
In 2024, South Korea's automobile exports to the United States stood at $34.7 billion, accounting for 49% of its total auto exports.
