Seoul: The government will hold an emergency meeting with local automotive companies Thursday to discuss the possible impact of the U.S. administration's plan to start imposing auto tariffs next week, the industry ministry said. The meeting, to be chaired by Industry Minister Ahn Duk-geun, will be held later in the day with the attendance of officials from major automobile companies here, according to the Ministry of Trade, Industry and Energy.
According to Yonhap News Agency, the planned meeting comes shortly after U.S. President Donald Trump announced his administration will start imposing 25 percent tariffs on all imported cars, light trucks, and key parts, such as engines and transmissions, from Wednesday. This move is expected to significantly affect South Korean car manufacturers and the global automotive industry.
In 2024, Seoul exported US$34.7 billion worth of automobiles to the United States, representing almost half of the country's total auto exports for the year. Local industry leaders Hyundai Motor Co. and Kia Corp. exported a combined 970,000 vehicles to the U.S. last year. GM Korea Co., the South Korean unit of General Motors Co., also shipped 410,000 cars to the U.S., accounting for 85 percent of its total overseas sales.
Shares of Hyundai Motor and Kia had slid 3.38 percent and 2.07 percent, respectively, on the main Seoul bourse as of 9:15 a.m., underperforming the broader Korea Composite Stock Price Index's 0.64 percent drop.