South Korea announced emergency measures for the hit auto industry by American tariff
South Korea on Wednesday announced emergency assistance measures for its auto sector, seeking to reduce the tariff of US President Donald Trump in an area that has seen years of rapidly growing exports in the United States.
Measures include financial assistance to the auto industry as well as tax deduction and subsidy to promote domestic demand, while the government also vowed efforts to help in interaction with the US and to expand markets.
Trump has announced 25% tariff on imported cars and light trucks starting on Thursday. The manufacturers are expected to bear some of the tariff costs in the first year, but will eventually change the production and possibly stop importing some low-trunk models in the US market.
“Given the ratio of local production of South Korean vehicle manufacturers in the United States, our industry is comparatively a loss,” the government said in a statement.
Tariff was expected to have a “significant” loss to South Korean vehicle manufacturers and auto parts manufacturers, although it was difficult to come up with numerical estimates at this time, the government said.
To help prevent any liquidity issues, the government will increase policy financing support for the auto industry, won in 13 trillions in 2025, won from 13 trillions already planned.
-Reuters
