South Korea To Push For Swift Resolution On Auto Tariffs In US Trade Talks
South Korea’s Industry Minister Ahn Duk-geun said on Wednesday that Seoul would seek a swift resolution to the issue of auto tariffs during trade talks with US officials and is also prepared to address the potential inclusion of defence cost discussions. The talks, scheduled to take place in Washington on Thursday, come in response to the US decision to impose 10% general tariffs and 25% tariffs on automobiles and steel. A 90-day suspension of reciprocal 25% tariffs on South Korean exports remains in effect. “We are preparing for negotiations calmly and carefully. However, in the case of automobiles that are heavily hit by 25% tariffs now, we plan to do our best to come up with a solution as soon as possible,” Ahn told reporters ahead of his departure to Washington. South Korea’s exports in the first 20 days of April fell 5.2% year-on-year, with shipments to the US particularly affected. Automobile exports dropped by 6.5%, while auto parts saw a 1.7% decline. Earlier this month, the South Korean government announced emergency support measures aimed at easing the impact of tariffs on the auto sector, which has experienced rapid export growth to the US in recent years. In 2024 alone, auto exports to the United States reached $34.7 billion, representing 49% of South Korea’s total auto exports, led by firms such as Hyundai Motor. Ahn added that South Korea is also bracing for the possibility that defence cost-sharing may be raised during the discussions. President Donald Trump has indicated a desire to include negotiations over the cost of stationing 28,500 US troops in South Korea as part of broader trade talks—an approach he has described as “one-stop shopping.” South Korean officials have previously stated that defence cost-sharing is not on the table for negotiation, but Ahn noted Seoul is prepared should the matter be raised.
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