South Korea is revving up its fight against U.S. trade pressure with a $2 billion rescue package for its car industry, officials announced this week. The move comes as new 25% tariffs on vehicle imports, launched by the U.S. last Thursday, threaten to slam the brakes on one of Seoul’s key economic engines.
What’s Happening? 🔥
Automakers like Hyundai and Kia are bracing for impact as the Biden administration’s tariffs hit. With nearly half of South Korea’s car exports destined for the U.S. last year, the stakes are high – analysts warn sales could drop by nearly 20% this year alone. The government’s 3 trillion won ($2B) aid package, set for approval this week, will flow through state-backed lenders to help companies stay competitive.
Why It Matters 🌍
This isn’t just about shiny sedans: South Korea exported $8.2B in car parts last year, and U.S. tariffs on components kick in next month. Meanwhile, Prime Minister Han Duck-soo (now acting president) called for “all hands on deck” to navigate what analysts are calling a “trade war domino effect.”
💡 Pro Tip: While K-pop dominates headlines, cars are South Korea’s #1 export to America – making this showdown a economic thriller worth watching.
