Free trade agreement sidelined as Trump weaponizes tariffs and private sector acts without waiting for government
The U.S. announced on Thursday that it will impose a 25% tariff on all imported passenger vehicles and key auto parts, citing national security threats under Section 232 of the Trade Expansion Act. The tariff will take effect on April 3 for vehicles and no later than May 3 for parts, overriding prior trade agreements including the U.S.-Korea Free Trade Agreement (KORUS).
In response, South Korea’s trade ministry convened an emergency meeting in Seoul with automakers, parts suppliers and industry experts. Trade Minister Ahn Duk-geun warned that the tariff would present “significant difficulty” for South Korean firms and pledged to prepare a national emergency strategy for the auto industry by April.
The U.S. announced on Thursday that it will impose a 25% tariff on all imported passenger vehicles and key auto parts, citing national security threats under Section 232 of the Trade Expansion Act. The tariff will take effect on April 3 for vehicles and no later than May 3 for parts, overriding prior trade agreements including the U.S.-Korea Free Trade Agreement (KORUS).
In response, South Korea’s trade ministry convened an emergency meeting in Seoul with automakers, parts suppliers and industry experts. Trade Minister Ahn Duk-geun warned that the tariff would present “significant difficulty” for South Korean firms and pledged to prepare a national emergency strategy for the auto industry by April.
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