Auto exports inch down in April on US tariff impact
The value of outbound shipments of automobiles came to $6.53 billion last month, down 3.8 percent from a year earlier, according to data from the Ministry of Trade, Industry and Energy.
By region, exports to North America tumbled 17.8 percent on-year to $3.36 billion, with shipments to the US plunging 19.6 percent to $2.89 billion.
In contrast, exports to the European Union surged 26.7 percent to $953 million, driven by robust sales of Kia Corp.'s EV3 and Hyundai Motor Co.'s Casper Electric.
On the domestic front, car sales increased for the third consecutive month in April, growing 6.7 percent from a year earlier.
The rise was led by strong demand for electric vehicles and hybrid models, which saw sales growth of 50.3 percent and 29.9 percent on-year, respectively.
EVs and hybrids accounted for 46 percent of the total 151,000 vehicles sold in the domestic market last month.
The South Korean auto industry is closely monitoring the impact of the 25 percent tariff imposed by the Donald Trump administration, which took effect on April 3.
In response, the government announced plans to inject an additional 2 trillion won ($1.43 billion) in liquidity into the industry, on top of the previously pledged 13 trillion won in policy financing.
Seoul also vowed to consider a range of measures to bolster the domestic automotive sector, including expanded subsidies for EV purchases, extended tax incentives for new vehicle buyers and efforts to diversify export markets.
Meanwhile, South Korea and the US are scheduled to begin working-level consultations later this week to draw up a comprehensive agreement by early July. The talks will cover the new US tariff regime, as well as broader economic and industrial cooperation. (Yonhap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
![[Editorial] Beef and barriers](/_next/image?url=https%3A%2F%2Fall-logos-bucket.s3.amazonaws.com%2Fkoreaherald.com.png&w=48&q=75){kind=small}
Korea Herald
an hour ago
- Korea Herald
[Editorial] Beef and barriers
Trade tensions rise over beef and investments, with economic growth hanging in the balance As the Aug. 1 deadline for US reciprocal tariffs approaches, South Korea faces intensifying pressure to make politically sensitive trade concessions. Nowhere is this tension more visible than in the dispute over American beef. On July 24, US President Donald Trump took to social media to praise Australia's decision to open its beef market — including imports of cattle over 30 months old — and warned that countries refusing 'magnificent' US beef were 'on notice.' Among major US trade partners, South Korea now stands alone in maintaining such restrictions. What's at stake is more than beef. South Korea is racing to avert the imposition of 25 percent reciprocal tariffs on a range of exports. These duties would hit at a precarious moment for its manufacturing base, already strained by stagnant domestic demand and mounting global uncertainty. In recent talks in Washington and New York, South Korean officials proposed a revised investment package totaling over $100 billion and offered limited concessions on rice and beef — areas long deemed untouchable. Yet US negotiators, emboldened by recent deals with Japan and the UK, are demanding more. The comparison with Japan has become particularly thorny. Tokyo secured a reduction in reciprocal tariffs to 15 percent in exchange for a $550 billion investment commitment and broader market access for US agricultural and auto exports. South Korea's proposed investment, though substantial, remains well short of that mark. More troubling, if South Korean exports are hit with 25 percent tariffs while Japan's face only 15 percent, Korean manufacturers would suffer an immediate and damaging competitiveness gap. Recent earnings reports from Hyundai and Kia already show steep profit declines, driven in part by early US tariffs on automobiles. Extending such disadvantages across additional sectors could deepen South Korea's growth malaise and leave long-term economic scars. The options are narrowing, but not yet exhausted. Seoul has signaled a more flexible posture, suggesting it may allow partial openings of the beef market and step back from earlier prohibitions. Unlike Japan's investment-heavy deal, however, South Korea is positioning its offer around industrial cooperation, particularly in shipbuilding — a sector President Trump has prioritized for revival. With China expanding its maritime footprint, Washington may be receptive to deeper strategic ties with Seoul in shipbuilding, semiconductors and batteries. South Korea has framed these offers not merely as trade-offs, but as building blocks of a broader manufacturing alliance aligned with US supply chain objectives. Still, the outlook remains uncertain. Trump and key trade officials are now in Europe for parallel negotiations, leaving only July 30 and 31 as viable windows for a final agreement. Absent a breakthrough, the tariffs will take effect on Aug. 1. Analysts warn that if the US proceeds with a 25 percent tariff, South Korea's real gross domestic product could decline by as much as 0.4 percent, even under a gradual adjustment scenario. Medium-sized exporters would be hit hardest, lacking the scale to shift production or absorb the cost shock. South Korea's negotiators must weigh the costs of limited market concessions against the broader fallout of failure. While agricultural sensitivities are real, clinging to legacy protections may imperil national economic interests. Other countries have accepted sectoral compromises in return for tariff relief and market stability. South Korea must now craft a tailored approach that secures similar benefits without replicating others' terms. Avoiding a blanket concession is essential, as is avoiding blanket resistance. If Seoul cannot match Tokyo's dollar commitments, it must compensate with industrial leverage, strategic alignment and diplomatic finesse. These final days of negotiation will test its ability to safeguard the economic base while sustaining political and public consensus at home. Never has it been clearer that small concessions now could prevent far greater losses later.
Korea Herald
13 hours ago
- Korea Herald
Saluting the sacrifice of UNC veterans
Five foreign veterans of the United Nations Command who fought in the 1950-53 Korean War were greeted with a standing ovation from a crowd of over 1,000 at Kintex in Goyang, Gyeonggi Province, where a ceremony was held to mark UN Forces Participation Day, observed annually on July 27. The national day of remembrance to honor the sacrifices and contributions of UN veterans also marks the date when the armistice agreement was signed to halt the Korean War in 1953. Throughout the three-year conflict, more than 1.9 million personnel from 22 countries served under the UNC flag, providing combat, medical and logistical support. During the ceremony, the South Korean government posthumously presented the Order of Taegeuk Military Merit, the country's highest military honor, to the late US veteran Fred McGee. From January to November 1952, McGee served in the US Army as a private first class with Company K, 3rd Battalion, 17th Infantry Regiment, 7th Infantry Division. Prime Minister Kim Min-seok entered the venue pushing the wheelchair of a veteran who had difficulty walking. 'Our alliance has grown stronger, and together we will continue moving toward a future of peace and prosperity,' Kim said during his speech. 'Despite the sacrifices made by the UN forces and our own efforts 75 years ago, the pain of division still lingers,' he added, pledging to expand scholarship programs and exchange camps for the descendants of Korean War veterans.
Korea Herald
19 hours ago
- Korea Herald
S. Korea's flight delay rate slightly rises to 23.6% in first half
Nearly one in four flights operated by South Korean airlines in the first half of the year experienced delays in their departures or arrivals, data showed Sunday. The average delay rate for domestic and international flights operated by 10 domestic airlines from January to June stood at 23.6 percent, according to the data from the transport ministry and Korea Airports Corp. Of the 329,736 flights operated in the first half, 77,700 were delayed. A flight is considered delayed when it departs or arrives 15 minutes past its scheduled time. The delay rate for the first half marks a 1 percentage point increase from the same period last year. The delay rate for international flights gained 3.1 percentage points over the cited period, while that of domestic flights dropped by 1.4 percentage points, the data showed. The increase in the delay rate was partly attributed to a record number of international flights in the first half of the year, which stood at 264,254, leading to airport congestion, along with frequent turbulence and airspace restrictions on international flight paths. By airline, Air Seoul reported the highest delay rate of 36.5 percent, suggesting more than one in three flights experienced delays in departures or arrivals. An Air Seoul official said some of the delays had occurred due to safety inspections, adding the airline will strive to minimize customer inconvenience in the second half. (Yonhap)
