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Key Points

South Korea's car exports to the US plummeted nearly 20% in April after Washington imposed 25% tariffs. Meanwhile, EU-bound shipments jumped 26.7% thanks to strong EV sales from Kia and Hyundai. Domestically, electric vehicle sales surged over 50% as hybrids gained traction. Seoul is countering with $1.4B in new industry support while negotiating with the US.

Key Points: South Korea Auto Exports Drop to US After Trump-Era Tariffs

  • US tariffs caused 19.6% drop in South Korea auto exports
  • EU EV sales surged 26.7% led by Kia and Hyundai
  • Domestic sales rose 6.7% with EVs up 50%
  • Seoul pledges $1.43B more in industry support
2 min read

South Korea's auto exports to US drops in April (YoY) amid US tariffs: Report

South Korea's car exports to the US fell 19.6% in April as new 25% tariffs hit, while EU EV sales surged 26.7%.

"Exports to the US plunged 19.6% to USD 2.89 billion amid new 25% tariffs – Korean Herald"

New Delhi, May 20

South Korea's automobile exports declined in April year on year, largely due to a sharp drop in shipments to the United States following Washington's imposition of steep tariffs on foreign-made cars, reports the Korean Herald, quoting government data.

The value of outbound shipments of automobiles was down 3.8 per cent to USD 6.53 billion in April shows the data of South Korea's Ministry of Trade, Industry and Energy.

Exports to North America declined 17.8 per cent to USD 3.36 billion in April 2025, as compared with April 2024. Shipments to the US also plunged 19.6 per cent to USD 2.89 billion.

South Korea's car industry is seeing strong growth, both at home and overseas.

Exports to the European Union (EU) jumped by 26.7 per cent in April, reaching USD 953 million, due to strong sales of electric models like Kia's EV3 and Hyundai's Casper Electric, the Korean Herald report added.

At home, car sales also rose for the third month in a row, increasing by 6.7 per cent compared to last year.

Electric and hybrid cars were especially popular, with EV sales growing by over 50 per cent and hybrid sales by nearly 30 per cent. Together, both the segments made up 46 per cent of all the 151,000 cars sold in South Korea last month, as per the report.

However, the industry is keeping a close eye on a new 25 per cent import tax that the US introduced on April 3, a policy that started under former President Donald Trump.

The report adds that in order to support the industry, the South Korean government announced plans to inject an additional 2 trillion won (USD 1.43 billion) in liquidity into the industry. It is in addition to the previously pledged 13 trillion won in policy financing.

Meanwhile, South Korea and the US will start detailed discussions this week to reach a broader agreement by early July. These talks will focus on the new US tariffs and how the two countries can work together on economic and industrial issues.

South Korea has also pledged to work on strengthening the domestic automotive sector. Measures such as subsidies for EV purchases, extended tax incentives for new vehicle buyers and efforts to diversify export markets will be taken.

- ANI

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Reader Comments

R
Rahul K.
Interesting to see how US tariffs are impacting global trade. While South Korea's exports to EU are growing, the US market decline shows how protectionist policies can backfire. India should learn from this and focus on self-reliance in auto sector under Make in India. 🚗
P
Priya M.
The EV growth numbers in South Korea are impressive! India needs to accelerate our EV adoption too. But we must ensure our policies don't hurt domestic manufacturers like what's happening with Korean automakers in US. Balance is key.
A
Arjun S.
This shows why trade wars are bad for everyone. US consumers will pay more for cars, Korean companies lose business. Hope India doesn't get caught in such crossfires as we expand our auto exports globally. Our Maruti and Tata should watch these trends carefully.
S
Sunita P.
The 50% growth in EV sales in Korea is eye-opening! We need similar push in India with better charging infrastructure. But our focus should be on affordable EVs for middle class, not just luxury models. Korean companies are doing well here - maybe Indian automakers can collaborate?
V
Vikram J.
While the article focuses on US-Korea trade, we should note how Korea is smartly diversifying to EU market. India should also explore more export opportunities in Africa and Latin America rather than depending too much on traditional markets. Global trade is changing fast!
N
Neha R.
The Korean government's support to auto industry (2 trillion won!) shows how important manufacturing is for developed economies. Hope our state governments also give similar focus to auto hubs beyond just Gujarat and Tamil Nadu. Every state should have auto policy.

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