South Korea’s automotive exports reached an all-time February high of $6.1 billion, rising 17.8% from a year earlier, as US consumers and dealers rushed to purchase vehicles before new tariffs take effect, the government reported.
Shipments to North America increased 14.8% to $3.2 billion, with 85% of those exports heading to the United States, according to South Korea’s Ministry of Trade, Industry and Energy.
The surge comes as US President Donald Trump prepares to implement 25% tariffs on imported vehicles starting April 2, a protectionist measure expected to significantly impact South Korean automakers. Hyundai Motor Group, the world’s third-largest automaker with subsidiaries Hyundai Motor Co. and Kia Corp., counts the US as its largest overseas market.
The US is unlikely to exempt South Korean vehicles from the new duties, as America’s trade deficit with South Korea reached $44.1 billion in automotive trade last year, representing two-thirds of the total $66 billion shortfall with the country.
Analysts predict steep declines in Korean auto exports once the tariffs take effect. The Korea Institute for Industrial Economics & Trade forecasts a 20.5% drop, while IBK Economic Research Institute projects an 18.6% decrease.
South Korean automakers shipped 1.43 million vehicles to the US in 2024, more than half their total exports of 2.78 million.
