Asia and Europe are bracing for a blow as the US administration's 25 percent tariffs on imports of passenger cars, light trucks and auto parts could disrupt trade flows, mainly from key exporting countries such as South Korea, Japan and Germany.
Tariffs on passenger cars and light trucks came into force on April 3, and duties on auto parts will come into force on May 3. However, the automotive industry will not face the additional tariffs announced by the U.S. administration on April 2.
As vehicles and auto parts are closely linked to the steel and aluminum markets, the move is expected to add another layer of uncertainty as the U.S. has already imposed 25 percent tariffs on all steel and aluminum imports, leading to retaliatory measures from other countries.
South Korean Prime Minister Han Dak-soo said on April 3 that his country would "quickly prepare emergency support measures" for industries and companies that would be affected by U.S. tariffs on cars and other goods.
According to a Commerce Department official, in response to the U.S. tariff announcement on April 2, China said it would take countermeasures to protect its own rights and interests.
Japanese Prime Minister Shigeru Ishiba said on March 27 that his government would consider "all options" in connection with the US tariffs.
The European Association of Automobile Manufacturers said that the EU and the United States should hold talks to find an immediate solution to prevent tariffs and the devastating effects of a trade war that would negatively affect not only global automakers, but also domestic production in the United States.
Asia
According to the U.S. Department of Commerce, Japan shipped 4 million vehicles to the United States in 2024 and became the third largest exporter to the United States.
According to the Ministry of Finance, Japanese car exports to the United States in 2024 totaled 03 trillion yen ($39 billion), up 1% from the same period last year.
According to the Ministry of Trade, Industry and Energy, South Korean car exports to the United States totaled $401 billion in 2024, up 3% from 2023. According to the US Department of Commerce, exports reached 5 million units in 2024.
According to the U.S. Department of Commerce, China exported units of automobiles to the United States in 2024, accounting for only 7% of total Chinese automobile exports.
Imports of Chinese electric vehicles may face steep tariff increases, as the United States has already increased tariffs on Chinese-made electric vehicles four times to 100% in September 2024, Chinese sources said.
Higher tariffs in the US will increase uncertainty
