South Korea’s Industry Minister, Ahn Duk-geun, said his country’s auto industry will be severely impacted once President Donald Trump’s tariffs on automobile imports become effective.
He also claimed that the administration is going to launch an emergency response no later than April.
The minister made the remark at a meeting with industry representatives on Thursday, stating that South Korea will closely work with the US administration to pursue ways to mitigate the adverse impact on South Korean automakers and parts makers.
“Global uncertainties are mounting, but South Korean carmakers will not be isolated in dealing with them. The government will look at providing financial assistance, investment incentives, and market diversification. “Parts suppliers can be expected to be hit especially hard,” the minister said.
Trump slapped a 25% tariff on foreign autos, enraging and prompting threats of retaliation from targeted countries.
Shares in Hyundai Motor tumbled over 4%, and sister company Kia Corp dropped over 3% after Trump spoke.
Hyundai Motor shares are set to see their biggest daily percentage drop since late October 2024.
Hyundai, together with its affiliate Kia, is the world’s third-largest automaker by sales.
South Korea’s exports of vehicles to the United States totalled $34.7 billion in 2024, or 49% of all auto exports.
