South Korea Expects Auto Sector Impact From Trump Japan Trade Deal

U.S. President Donald Trump signed an executive order to implement a trade deal with Japan that lowers tariffs on Japanese car imports to 15%, a move that South Korea says could negatively impact its auto industry. Currently, U.S. tariffs on South Korean auto imports remain at 25%, putting South Korean automakers at a competitive disadvantage compared to their Japanese rivals. South Korea is reviewing the details of the trade deal and consulting with the U.S., but the timing for a similar tariff reduction for South Korean autos remains uncertain due to ongoing disputes over Seoul's pledged $350 billion investments in U.S. strategic industries. Despite a summit between South Korean President Lee Jae Myung and President Trump, the two sides are still negotiating the investment details and working toward a memorandum of understanding. South Korean automakers, including Hyundai and Kia, have expressed frustration over the situation, with their shares dipping slightly following the announcement. South Korea has also emphasized the importance of protecting its auto industry given its key role in exports and employment.