South Korea is revving up to battle adverse U.S. tariffs that hit its prized automotive industry. Late last Thursday, a 25% tariff on car imports took effect, shaking up an industry that fuels nearly half of the country’s vehicle exports to the U.S. 🚗💥
In a dynamic move to support local automakers like Hyundai and Kia, the government has unveiled an emergency funding plan of about 3 trillion won (roughly $2 billion). This aid will be channeled through Korea Development Bank's existing loan programs, offering a much-needed boost as forecasts predict an 18.6% drop in exports.
Local auto parts makers, whose components contributed to an impressive $8.22 billion in exports last year, are also feeling the pressure—with similar tariffs set to hit car parts on May 3. Calls for additional support are growing as these suppliers brace for impact. 🔧
During a high-stakes emergency economic meeting, acting president Prime Minister Han Duck-soo urged that all resources be mobilized to tackle the trade crisis. "Our full capacity will be mobilized to overcome this trade crisis," he declared, emphasizing the urgency in the face of a global tariff war.
This move is seen as a key step in safeguarding South Korea's automotive legacy and keeping its engines running in a rapidly shifting global market. Stay tuned for more updates on this unfolding trade drama!
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Seoul to inject 3t won in aid for car industry hit by U.S. tariffs
cgtn.com
