South Korea’s auto sector braces for U.S. tariff impact
U.S. tariffs on automobiles, set to take effect on April 2, are causing concern for South Korea’s economy, particularly its auto industry, which is the second-largest exporter of cars to the U.S. The new policy, which also targets semiconductors and pharmaceuticals, could disrupt South Korea’s growing exports and production, especially as it became the top automotive exporter to the U.S. in 2024. South Korea’s car exports to the U.S. made up 27% of total imports from the country, and any disruption could severely impact its economy, already struggling with declining exports to China. Experts warn of significant consequences for South Korea’s auto industry and broader economic stability.