Trump: 'Auto tariffs to be announced around April 2'... South Korea directly affected

Korea Economic Daily

Summary

President Trump announced plans to make an auto tariff related announcement on April 2.
As automobiles are Korea's #1 export item to the US, tariffs would likely cause significant changes in exports.
Auto exports to the US account for 49.1% of Korea's exports, and reciprocal tariffs are expected to be a crucial factor.

Unclear whether April 2 is implementation date for auto tariffs

Automobiles are #1 export to US... Variable factor for Korean exports

President Donald Trump said on the 14th (local time) that he plans to announce tariffs on imported vehicles around April 2nd. It remains unclear whether April 2nd is the implementation date for auto tariffs or the date for announcing specific plans for imposing auto tariffs.

At a White House executive order signing ceremony, Trump responded "probably around April 2nd" to reporters' questions about the timeline for introducing import car tariffs.

Trump noted he could do it on April 1st (April Fools' Day) but said he's somewhat superstitious, reiterating plans for April 2nd. Recently, when announcing various tariff plans, Trump has typically set implementation dates with preparation periods rather than immediate execution.

Following Trump's recent statements about reviewing tariffs on automobiles, semiconductors, and pharmaceuticals, the specific timeline for auto tariffs creates uncertainty for Korea's automobile exports to the US.

Under the Korea-US Free Trade Agreement (FTA), the US has applied zero tariffs on Korean passenger cars, including electric vehicles, since 2016.

Korea's total automobile exports last year were $70.789 billion, with exports to the US accounting for $34.744 billion, or 49.1% of the total.

Automobiles are Korea's largest export item to the US, and as of 2023, Korea ranks 4th in auto exports to the US after Mexico, Japan, and Canada.

April 2nd is also the earliest date mentioned by the US side for potentially implementing 'reciprocal tariffs' after reviewing tariff rates and non-tariff barriers for various countries.

When Trump announced the decision to impose 'reciprocal tariffs' on March 13th, Commerce Secretary nominee Howard Lutnik stated they would complete country-by-country reviews by April 1st, allowing for reciprocal tariffs to be imposed from April 2nd based on the president's final decision.

Therefore, Trump appears to be suggesting the possibility of announcing auto import tariffs simultaneously with reciprocal tariffs on various countries.

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com