讀後心得

Under the impact of the 25% import tariff on cars imposed by the United States, the South Korean government plans to offer emergency support of up to 3 trillion Korean won (approximately 2 billion USD) to the automotive industry to mitigate the impact. Luxury car manufacturer Jaguar Land Rover (JLR) has announced a suspension of shipments to the United States to assess the effects of the new tariff. Cars are a major export item for South Korea, and experts predict that the tariffs will lead to an 18.6% decline in South Korea’s automobile export value. The South Korean government also plans to establish a strategic fund of 50 trillion Korean won in the future to support technological development. The escalation of the global trade war will have profound impacts on the automotive industry.

Under the impact of the series of tariffs imposed by the U.S. President, South Korea plans to propose an emergency aid package of up to 3 trillion won (approximately $2 billion) to its automotive industry to mitigate the effects of the 25% import tariff on cars introduced by the U.S. In addition, the British luxury car manufacturer Jaguar Land Rover announced that it will suspend shipments to the U.S. this month.

The South Korean government plans to hold a ministerial-level interdepartmental meeting this week to approve this emergency aid plan, as the U.S. tariffs on imported cars have made South Korea one of the hardest-hit countries. Cars are South Korea's largest export item, with exports to the U.S. expected to reach $34.7 billion in 2024, accounting for nearly half of its total automotive exports.

Experts warn that the new tariffs will force South Korean cars to increase in price in the U.S. market, significantly impacting the South Korean economy. It is estimated that, after the tariffs are imposed, the number of South Korean cars exported to the U.S. will decline by 18.6%. A planning official from the Ministry of Finance noted that the amount of this aid plan could reach 3 trillion won, but the specific amount has yet to be determined.

After government approval of the plan, funding will be allocated through channels including state-owned lending institutions, such as the Korea Development Bank, which will provide emergency aid based on existing lending plans. In addition, KDB and other state-owned lending institutions will propose a broader aid plan of up to 248 trillion won within the year to help businesses overcome the challenging global operational environment and restructure industries.

The South Korean government also plans to establish a strategic fund of 50 trillion won to support the development of future mobility technologies in response to the increasingly uncertain economic environment. After the U.S. began imposing a 25% tariff on all imported cars on the 3rd, Jaguar Land Rover announced on the 6th that it would suspend exports to the U.S. to assess the impact of the new tariffs. They stated that they are working with business partners to address the issues arising from the new trade regulations and are pausing short-term actions, including shipments, to formulate medium- to long-term development plans.

External expectations are that the escalation of the trade war will have a strong impact on the global automotive industry, particularly affecting highly globalized supply chains and automakers that are extremely reliant on the North American market.