US Imposes 25 Percent Tariff on South Korean Exports Shocking Automotive Semiconductor and Steel Industries
Failed to add items
Sorry, we are unable to add the item because your shopping cart is already at capacity.
Add to basket failed.
Please try again later
Add to Wish List failed.
Please try again later
Remove from Wish List failed.
Please try again later
Follow podcast failed
Unfollow podcast failed
US Imposes 25 Percent Tariff on South Korean Exports Shocking Automotive Semiconductor and Steel Industries
-
Narrated by:
-
By:
About this listen
On April 9, the United States enacted a 25 percent tariff on South Korean exports, a substantial increase that marks the highest rate ever imposed on a U.S. Free Trade Agreement partner, even outpacing Japan’s 24 percent and the European Union’s 20 percent. According to Source of Asia, South Korean companies, accustomed to smooth trade since the 2007 FTA, are now facing a dramatically altered business environment. The tariffs have sent shockwaves through South Korea’s key industries, with the automotive, semiconductor, and steel and aluminum sectors at the forefront of the disruptions.
Hyundai and Kia, two of South Korea’s most prominent automakers, accounted for $34.7 billion in vehicle exports to the U.S. last year—nearly half of the nation’s total automotive exports. These companies are now not only facing the 25 percent general tariff but are also grappling with additional threats of tariffs on specific vehicle imports that could soar as high as 200 percent, according to Source of Asia. The impact on their supply chains is immediate and considerable, as South Korean automakers rely heavily on imported parts to assemble vehicles at their American plants. Hyundai, for example, sources about 12 percent of its parts locally in North America, while Kia sources up to 20 percent, as highlighted by the Korea Economic Institute of America.
The situation is particularly adverse, given that new tariffs land just as Hyundai Motor Group celebrates opening its third U.S. production facility in Georgia—a $7.6 billion investment aimed at expanding electric vehicle production. This move was quickly followed by an announcement of an additional $21 billion to be invested in the United States, with $9 billion earmarked for car production and $6.1 billion for the steel industry, which is also now subject to the new 25 percent duty.
The Trump administration’s protectionist stance is reshaping not only bilateral trade but also wider diplomatic and economic alliances. According to Yonhap News, there was initially confusion when the White House announced a reciprocal tariff rate of 26 percent for South Korea before correcting it to 25 percent after urgent diplomatic outreach from Seoul, which argued that every percentage point makes a significant difference given South Korea's large export volume.
Meanwhile, the White House has emphasized a new “baseline” 10 percent tariff on all imports, with reciprocal tariffs targeting individual countries for what the administration sees as unfair trade practices. The New York Times reports these tariffs are additional to measures from Trump’s first term, amplifying pressure not just on China—which now faces a combined 104 percent tariff—but also on traditional allies like South Korea.
As the U.S.-South Korea trade relationship navigates these turbulent times, there is uncertainty whether new agreements will eventually supplement or replace the existing FTA. Korean business leaders and government officials are actively engaging with Washington, seeking to mitigate the most severe effects through new investment commitments and ongoing negotiations.
Thank you for tuning in to the South Korea Tariff News and Tracker. Don’t forget to subscribe for the latest updates and insights. This has been a quiet please production, for more check out quiet please dot ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
What listeners say about US Imposes 25 Percent Tariff on South Korean Exports Shocking Automotive Semiconductor and Steel Industries
Average Customer RatingsReviews - Please select the tabs below to change the source of reviews.
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.