South Korea's auto exports to the U.S. down for six consecutive months amid 25% 'tariff bomb'

August overall car exports up 8.6%

U.S. down 15.2%·EU up 54.0%·Other Europe up 73.2%

Exports of eco-friendly cars such as electric vehicles up 26.6%

Due to the 'Trump tariff,' South Korea's auto export value to the U.S. fell for the sixth consecutive month in August compared with the same month last year.

However, overall car exports were found to have increased for the third consecutive month.

This was thanks to Korean automakers increasing local production in the United States to avoid tariffs and making gains in markets such as Europe, where competition in eco-friendly vehicles is intense.

According to the "August 2025 Automobile Industry Trends" released by the Ministry of Trade, Industry and Energy on the 16th, South Korea's auto export value last month was $5.5 billion, up 8.6% from August last year. This is the largest August performance on record.

Export volume in August was 200,317 units, up 5.5% from August last year.

By region, exports to the United States, South Korea's largest auto export market, amounted to $2.097 billion, down 15.2% from August last year.

Exports to the U.S. have been declining for six consecutive months, reflecting the impact of the Trump administration imposing a 25% tariff on all imported cars since April, among other factors.

The month-on-month change rates for exports to the U.S. were -10.8% in March, -19.6% in April, -27.1% in May, -16.0% in June, -4.6% in July, and -15.2% in August.

Meanwhile, tariffs on Japanese cars, considered the biggest competitor in the U.S. market, will be 10 percentage points lower than those on Korean cars from local time on the 16th, raising concerns about further declines in exports to the U.S.

However, exports to the European Union (EU) and other regions increased significantly, lifting overall auto exports.

August exports to the EU were $790 million, up 54.0%, and other Europe was $550 million, up 73.2%. Asia was $590 million, up 9.3%; the Middle East was $370 million, up 9.8%; and Oceania was $340 million, up 20.1%.

The Ministry of Trade, Industry and Energy analyzed, "With electric vehicle exports gaining momentum in Europe, exports to Germany and the Netherlands more than doubled for two consecutive months, and exports to the UK and Türkiye roughly doubled as well, so exports increased year-on-year in all regions except North America."

Eco-friendly car exports in August were 69,497 units, up 26.6% from the same month last year, marking the eighth consecutive month of year-on-year increases.

Among eco-friendly cars, electric vehicle exports surged 78.4% to 22,528 units, continuing an increase for the second consecutive month. Hybrid vehicle exports also led growth at 43,277 units, up 11.0%. However, plug-in hybrid vehicle exports fell 12.1% to 3,692 units.

Domestic car sales in August were 138,809 units, up 8.3% from the same month last year, marking seven consecutive months of increases.

In particular, domestic sales of eco-friendly cars rose 36.1% to 70,393 units, accounting for 50.7% of total domestic sales.

Sales of hybrid vehicles (43,809 units) and electric vehicles (24,319 units) also advanced, increasing 25.4% and 55.7% respectively.

With continued strong domestic sales of electric vehicles, cumulative domestic EV sales from January to August this year reached 141,000 units, up 47.6% from the same period last year and approaching last year's annual sales (142,000 units). At this pace, last year's sales are expected to be surpassed in September.

Domestic automobile production in August was 321,008 units, up 7.1% from last year.

Hankyung.com reporter Choi Su-jin naive@hankyung.com