Synopsis
The South Korean government plans to devise strategies next month in reaction to the U.S. proposal for auto import tariffs, which are expected to severely impact the local automotive industry, as stated by the industry ministry on March 7.Key Takeaways
- New U.S. tariffs could severely affect South Korea's automotive industry.
- Government to create response measures in the coming month.
- Local automakers emphasize their contributions to the U.S. economy.
- Calls for support to mitigate industry impact.
- Stock market shows decline amid tariff uncertainties.
Seoul, March 7 (NationPress) The government will formulate strategies next month in response to the United States' proposal to impose tariffs on auto imports, as stated by the industry ministry on Friday. The anticipated new U.S. tariffs are likely to inflict significant damage on the South Korean automotive sector.
The Ministry of Trade, Industry and Energy disclosed this plan during a meeting with representatives from automakers, including leading domestic manufacturer Hyundai Motor Co. and GM Korea Co., the South Korean branch of General Motors Co., according to ministry officials, as reported by the Yonhap news agency.
During the meeting, participants evaluated that the suggested U.S. tariffs on auto imports might hinder South Korea's exports to the U.S., consequently affecting the local auto-parts manufacturing industry, the ministry noted.
Korean automakers urged the government to highlight their substantial contributions to the U.S. economy through significant investments, requesting comprehensive measures to counteract Washington's tariff plans.
They also advocated for various support initiatives to lessen the impact on the industry, such as diversifying export markets and policy financing, according to the ministry.
Meanwhile, South Korean stocks experienced a decline late Friday morning amid ongoing uncertainties regarding the U.S. administration's tariff plans.
Overnight, major U.S. stocks fell as investor confidence waned following the Donald Trump administration's inconsistent approach toward imposing tariffs on Canadian and Mexican imports, raising uncertainties within the global economy.
In Seoul, market leader Samsung Electronics decreased by 0.37 percent, while its chipmaking competitor SK Hynix fell by 1.46 percent.
Biopharmaceutical giant Samsung Biologics dropped by 2.3 percent, and leading automaker Hyundai Motor declined by 0.81 percent.
Among a few gainers, POSCO Holdings surged by 7.95 percent, and prominent battery manufacturer LG Energy Solution rose by 1.8 percent.
