Trump-era tariff cuts boost South Korea auto makers: what it means for Hyundai, GM and trade

It​‍​‌‍​‍‌​‍​‌‍​‍‌ was confirmed by the United States Department of Commerce under President Donald Trump, that South Korean car imports to the United States will be subject to a 15 percent tariff rate that is reduced, which will be effective retroactively from November 1, 2025.

This step seems to be connected with the commitment made by South Korea to invest approximately $350 billion in the U.S. industries of the future, such as shipbuilding and semiconductors. As part of the agreement, the reciprocal auto tariffs were lowered to facilitate the improvement of trade relations.

The decrease in tariffs is a welcome development for the leading South Korean car manufacturers like Hyundai that are now faced with less expensive import costs when selling cars in the United States market. These automakers can be motivated to increase their U.S. sales and market share.

For American car manufacturers and buyers, the cut in duties may be a factor in the promotion of price stability for cars that are foreign models. Moreover, it is a trade policy change that signals a potential reduction of costs for consumers thereby lessening the inflationary pressure on vehicle prices.

Still, the effect over time will be determined by how the reactions of businesses and consumers. Automakers will be in a position to choose whether to hand the savings over to buyers or retain them to increase their profits. On the other hand, trade relations between the United States and South Korea may be influenced by future negotiations and economic ​‍​‌‍​‍‌​‍​‌‍​‍‌conditions.