Trump announces 25% tariff on imported cars, raising concerns for Korean automakers

By Candice Kim Posted : March 27, 2025, 10:20 Updated : March 27, 2025, 10:20
US president Donald Trump in the Oval Office EPA-Yonhap
U.S. President Donald Trump at the Oval Office/ EPA-Yonhap

SEOUL, March 27 (AJP) - The United States will impose a 25 percent tariff on all imported vehicles not manufactured domestically, a measure that could have significant ramifications for South Korean automakers, particularly Hyundai Motor Group.

“What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” U.S. President Donald Trump said during a press conference in the Oval Office. “If they are made in the United States, there is absolutely no tariff.”

The tariff, set to take effect on April 2, is the second major commodity-specific duty announced by the Trump administration, following earlier levies on imported steel and aluminum.

The move underscores Trump’s continued focus on reshaping U.S. trade relationships and bolstering domestic manufacturing. Industry analysts say the new tariffs could dampen the competitiveness of imported vehicles and pose new challenges for international automakers seeking to navigate an increasingly protectionist U.S. trade environment.

The policy is expected to hit South Korea especially hard.

Automobiles are the country’s top export to the United States, with Korean automakers shipping $34.74 billion worth of vehicles last year, according to government figures. That figure accounts for nearly half of South Korea’s total global auto exports of $70.79 billion.

The announcement came just two days after Hyundai Motor Group Chairman Chung Eui-sun joined Trump at the White House to unveil the company’s plans to invest $21 billion in the United States over the next four years.

Hyundai, which currently exports approximately 970,000 vehicles annually to the U.S., has positioned its investment as a commitment to expanding its American footprint.
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