AUTO TARIFFS
Seoul is also pushing for reductions in US auto tariffs, similar to those secured by Japan.
South Korea’s largest carmaker Hyundai Motor, for instance, faces mounting pressure as tariffs on Japanese exports to the US were reduced to 15 per cent from Tuesday.
This is lower than the 25 per cent imposed on South Korea’s vehicles, which puts their automakers at a disadvantage.
Hyundai has already flagged that tariff costs would weigh more heavily on its third and fourth quarter earnings.
The issue of levies and the recent immigration raid on a Hyundai facility in the US earlier this month were raised in South Korea’s parliament on Tuesday amid concerns about the broader economic fallout.
South Korean Foreign Minister Cho Hyun told lawmakers that the government was trying to ease carmakers’ burden by finding a win-win outcome with the US.
But he stressed that Seoul would not rush the trade talks, because it wants to protect its national interests and maintain a strong South Korea-US relationship.
He noted that South Korea could not sign a trade deal with the US when their leaders met last month in Washington because the demands were not acceptable.
“At that time, the package was something we could not accept, so not putting it into writing was actually the way to protect our national interests,” said Cho.
“Since the details still had to be worked out, continuing talks was the best way to safeguard our interests. That’s why things turned out that way.”
