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7h ago

South Korea's Auto Exports Drop 3.8% in April as U.S. Tariffs Take Toll

Government reports sharp decline in U.S. shipments, offset by EU EV surge and domestic sales growth, with talks set to address tariff challenges.

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Overview

  • South Korea's auto exports fell 3.8% year-on-year in April, driven by a 19.6% plunge in shipments to the U.S. following the implementation of 25% tariffs on foreign-made cars.
  • Exports to the European Union surged 26.7%, fueled by strong demand for electric vehicles like Kia's EV3 and Hyundai's Casper Electric.
  • Domestic car sales grew 6.7% in April, with EVs and hybrids accounting for 46% of total sales and showing significant year-on-year growth.
  • The South Korean government announced an additional ₩2 trillion in liquidity support for the auto industry, alongside expanded subsidies, tax incentives, and export diversification efforts.
  • Working-level negotiations between South Korea and the U.S. are set to begin this week, aiming for a comprehensive agreement on tariffs and industrial cooperation by early July.