Synopsis
On March 27, the South Korean government will meet with local automotive firms to analyze the effects of upcoming U.S. auto tariffs. Industry leaders and officials will discuss the implications of a planned 25 percent tariff on imported vehicles and parts, set to begin on April 2.Key Takeaways
- Emergency meeting scheduled for Thursday.
- U.S. to impose 25% tariffs on imported vehicles.
- Potential significant impact on South Korean manufacturers.
- Hyundai and Kia exports at risk.
- Market shares already declining.
Seoul, March 27 (NationPress) The government is set to convene an emergency meeting with local automotive manufacturers on Thursday to evaluate the potential ramifications of the U.S. administration's intention to implement auto tariffs starting next week, as indicated by the industry ministry.
This gathering, which will be led by Industry Minister Ahn Duk-geun, is scheduled for later today and will feature representatives from major automotive firms in the region, as reported by the Ministry of Trade, Industry and Energy.
The meeting's arrangement follows the recent announcement from U.S. President Donald Trump, stating that his administration plans to enact 25 percent tariffs on all imported vehicles, light trucks, and essential components such as engines and transmissions beginning on April 2, with the tariffs taking effect the following day, according to Yonhap news agency.
This initiative is anticipated to significantly impact South Korean automobile manufacturers and the global automotive sector overall.
In 2024, South Korea exported $34.7 billion worth of vehicles to the United States, representing nearly half of the nation’s total automobile exports for that year.
Leading industry players, Hyundai Motor Co. and Kia Corp., collectively exported 970,000 vehicles last year, while GM Korea Co., the South Korean branch of General Motors Co., also shipped 410,000 cars abroad.
As of 9:15 a.m., shares of Hyundai Motor and Kia had dropped 3.38 percent and 2.07 percent, respectively, underperforming compared to the broader Korea Composite Stock Price Index, which fell by 0.64 percent.
Simultaneously, stocks in Seoul continued to decline on Thursday morning amidst rising worries following the U.S. administration's tariff announcement on all imported vehicles.
The benchmark Korea Composite Stock Price Index (KOSPI) decreased by 25.58 points, or 0.97 percent, to 2,618.36 by 11:20 a.m.
Overnight, major U.S. indices experienced losses, with the tech-heavy Nasdaq composite dropping 2.04 percent as shares of Nvidia, Tesla, and other prominent tech companies saw significant declines.
Hyundai Mobis, an auto parts manufacturing affiliate of Hyundai Motor, also saw a substantial drop of 3.68 percent.
