U.S. President Donald Trump has confirmed plans to announce tariffs on imported cars in early April, a move that could significantly impact South Korea’s automotive industry.
Speaking about the planned tariffs, Trump stated, “We’re going to do it on April 2, I think. Is that right?” His aide confirmed the date, though it remains unclear whether the tariffs will be implemented immediately or just formally announced.
Trump has long used tariffs as a key tool to reduce America’s trade deficit, boost domestic manufacturing, and pursue broader policy objectives, including curbing unauthorized migration and drug trafficking. His latest push for tariffs has raised concerns in South Korea, given that the country’s trade surplus with the U.S. reached $55.7 billion last year, according to Yonhap news agency.
The U.S. remains a crucial market for South Korean automakers, accounting for $34.7 billion, or 49.1 percent, of the country’s total car exports last year. Since 2016, no U.S. tariffs have been imposed on South Korean vehicles under a bilateral free trade agreement. However, Trump’s administration has been pursuing a policy of “reciprocal” tariffs, aiming to match import duties imposed by other countries on American goods.
Alongside the proposed auto tariffs, the U.S. has already announced a 25 percent tariff on steel and aluminum imports starting March 12 and is considering new tariffs on semiconductor chips and pharmaceuticals.
South Korean officials are closely monitoring Trump’s tariff decisions, particularly amid political uncertainty in Seoul following the impeachment of President Yoon Suk Yeol over his alleged martial law attempt in December. Foreign Minister Cho Tae-yul is expected to discuss the issue with U.S. Secretary of State Marco Rubio on the sidelines of an international security forum in Munich on Saturday.
Meanwhile, Trump has already imposed a 10 percent tariff on all Chinese imports and has temporarily suspended a planned 25 percent tariff on Canada and Mexico after the two countries agreed to strengthen efforts to curb drug trafficking at their borders with the U.S.
IANS