South Korea Ramps Up Auto Sector Support Amid U.S. Tariff Impact

South Korea introduced emergency measures to support its auto sector in response to U.S. President Trump's imposition of a 25% tariff on imported vehicles. The plan includes financial assistance, tax cuts, and subsidies, aiming to cushion the industry from the tariff's adverse effects and to expand market opportunities globally.

South Korea announced on Wednesday significant emergency support measures for its auto sector in response to U.S. President Donald Trump's aggressive 25% tariff on imported vehicles, which is set to take effect Thursday. The tariffs pose a significant threat to the industry, which has heavily relied on the steadily rising exports to the United States.

The government plans to inject financial support, slash taxes, and provide subsidies to boost domestic demand amid the looming tariff crisis. Negotiations are on the table to prevent South Korea from being unfavorably compared to other U.S. allies, according to a government statement. The auto sector remains concerned about whether the measures will suffice.

Efforts to pivot towards expanding export markets in the Global South come as the government bolsters its policy financing support to 15 trillion won by 2025. Hyundai, among designated key players, plans to maintain vehicle prices despite the potential tariff impact, keeping their U.S. consumer base in consideration.

(With inputs from agencies.)