Why Did S. Korea’s EV Exports to the US Plummet by Nearly 90% in 2025?
Synopsis
South Korea's electric vehicle exports to the U.S. saw a staggering decline of nearly 90% in 2025 due to tariffs and subsidy rollbacks. This article delves into the implications for South Korean automakers and the shifting landscape of EV exports amid changing global policies.
Key Takeaways
South Korea's EV exports to the U.S. plunged by nearly 90% .
The decline is attributed to Washington's auto tariffs .
Only 12,166 units were exported in 2025.
South Korea's EV exports to the U.S. made up just 4.6% of total global exports.
Analysts suggest focusing on alternative markets like Europe.
Seoul, Feb 4 (NationPress) South Korea's electric vehicle (EV) exports to the United States experienced a dramatic decline of nearly 90 percent in 2025. This downturn was primarily influenced by Washington's auto tariffs and the reduction of subsidies during the tenure of U.S. President Donald Trump, as indicated by industry data released on Wednesday.
Data from the Korea Automobile & Mobility Association revealed that South Korea's EV shipments to the U.S. totaled 12,166 units in 2025, marking an 86.8 percent drop from the 92,049 units recorded the year before, according to reports from Yonhap news agency.
This figure represents the lowest annual total since 2022, when the momentum for EV shipments began to build.
The downward trend became more pronounced towards the end of the year, with South Korea exporting a mere 13 EV units to the U.S. in November, which is the lowest monthly total on record.
Consequently, the proportion of U.S. shipments in South Korea's overall global EV exports declined to 4.6 percent last year, down from 35 percent in 2024.
Analysts predict that EV exports to the U.S. will continue to face challenges due to the ongoing tariffs and the rollback of associated subsidies.
“South Korean automakers should consider redirecting their efforts towards other markets, such as Europe, where carbon-neutral policies are becoming increasingly influential,” commented an industry expert.
In addition, South Korea's automobile exports fell by 10.5 percent year-on-year in October, largely attributed to the reduced number of business days caused by the prolonged Chuseok holiday, according to the data.
The total value of automobile exports reached US$5.5 billion last month, compared to $6.2 billion in the same month the previous year, as reported by the Ministry of Trade, Industry and Resources.
From January to October, the cumulative value of auto exports reached a record $59.6 billion.
The ministry noted that October exports were weak due to the timing of the fall harvest Chuseok holiday occurring in early October, unlike in 2024 when it was in September. In September, auto exports surged by 16.8 percent compared to the previous year, the ministry highlighted.
In terms of destination, exports to the United States decreased by 29 percent year-on-year, totaling $2.12 billion in October, likely due to the 25 percent import tariffs imposed on Korean vehicles by the Trump administration.
Point of View
I believe that the significant decline in South Korea's EV exports to the United States is a crucial indicator of the changing dynamics in global trade and policy. This situation underscores the need for South Korean automakers to adapt and explore new markets, particularly in light of increasing carbon-neutral initiatives in Europe.
NationPress
2 May 2026
Frequently Asked Questions
What caused the decline in EV exports?
The decline in EV exports from South Korea to the U.S. is primarily attributed to Washington's auto tariffs and the rollback of subsidies under the Trump administration.
How much did EV exports drop in 2025?
In 2025, South Korea's EV exports to the U.S. fell by nearly 90%, totaling 12,166 units.
What percentage of South Korea's EV exports went to the U.S. in 2025?
Only 4.6% of South Korea's total global EV exports were shipped to the U.S. in 2025.
What are the future expectations for EV exports?
Industry analysts predict that exports to the U.S. will remain sluggish due to ongoing tariffs and the reduction of subsidies.
What alternative markets are South Korean automakers considering?
South Korean automakers are advised to focus on markets like Europe, where carbon-neutral policies are gaining momentum.
