South Korea has announced urgent measures to support the auto industry
| Measures include financial support for the automotive industry, as well as tax breaks and subsidies to stimulate internal demand. The government also promised efforts to negotiate with the US and expand markets. |
Trump has announced a 25% duty on imports of cars and pickups, which will come into force on Thursday. Manufacturers are expected to bear some of the costs of customs duties in the first year, but will subsequently redirect production and possibly stop importing some low -volume models in the US market.
Trump’s duties came, for China, 104% became
« Given the lower share of local production of South Korean automakers in the United States, our industry is in a relatively disadvantage, » the government said in a statement.
The duties are expected to harm « significantly » South Korean car companies and auto parts manufacturers, although it is difficult to quantitative at the moment, the government added.
In order to prevent any problems with liquidity, the government will increase political financial support for the automotive industry from the pre -planned 13 trillion. The won of 15 trillion won ($ 10.18 billion) by 2025.
The tax on the purchases of vehicles from 5% to 3.5% to June 2025 will be reduced, and the subsidies for electric cars will increase to 30% -80% of the discount value (compared to the current 20% -40%), with the deadline being extended by another six months-by the end of this year.
The government has also announced that it will actively support the efforts of automakers to expand their exports to the so -called. Global South – the less developed countries in Africa, Latin America and Asia, where demand is increasing.
| For US customs, the government said, « We will do everything we can to ensure that the US will not treat South Korea less favorably than other allies through negotiations and strengthening bilateral cooperation, » without specifying specific details. |
The automotive industry welcomed the support plan, but said additional discussions were needed for more tax relief to stimulate internal demand. « There are serious concerns in the industry whether it will be enough, » an unnamed sector told Reuters
