{"id":2208610,"date":"2025-03-05T08:00:15","date_gmt":"2025-03-04T23:00:15","guid":{"rendered":"https:\/\/koreapro.org\/?p=2208610"},"modified":"2025-03-04T13:01:34","modified_gmt":"2025-03-04T04:01:34","slug":"south-korean-firms-face-fallout-as-north-american-trade-war-escalates","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/","title":{"rendered":"South Korean firms face fallout as North American trade war escalates"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The U.S. <\/span><a href=\"https:\/\/www.whitehouse.gov\/remarks\/2025\/03\/remarks-by-president-trump-on-investment-announcement\/\"><span style=\"font-weight: 400;\">will impose<\/span><\/a><span style=\"font-weight: 400;\"> 25% tariffs on Canadian and Mexican goods starting Wednesday, following a <\/span><a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/02\/progress-on-the-situation-at-our-northern-border\/\"><span style=\"font-weight: 400;\">month-long delay<\/span><\/a><span style=\"font-weight: 400;\">. President Donald Trump justified the move as necessary to address cross-border drug trafficking, despite sharp criticism from Ottawa and Mexico City. In retaliation, Canada <\/span><a href=\"https:\/\/www.pm.gc.ca\/en\/news\/statements\/2025\/03\/03\/statement-prime-minister-unjustified-us-tariffs-against-canada\"><span style=\"font-weight: 400;\">announced<\/span><\/a><span style=\"font-weight: 400;\"> $155 billion in countertariffs, with an initial $30 billion in duties taking effect immediately and the remainder to follow within 21 days.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">South Korean businesses with operations in Canada and Mexico will face higher costs and trade uncertainty, given their deep integration into North American supply chains. In 2023, South Korea\u2019s trade with Canada and Mexico totaled $34.4 billion, and major firms such as Samsung, Hyundai, LG and Kia operate over 200 subsidiaries in the two countries. Tariffs could erode the price competitiveness of South Korean-made vehicles, batteries and home appliances exported from Mexico to the U.S.<\/span><\/p>\n<p><b>WHY IT MATTERS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Trump\u2019s tariffs signal broader trade risks for South Korea. The White House is already preparing new sectoral tariffs on automobiles and semiconductors in April, raising concerns that South Korean exports to the U.S. could soon be hit. ROK industry minister Ahn Duk-geun has <\/span><a href=\"https:\/\/www.motie.go.kr\/kor\/article\/ATCL3f49a5a8c\/170194\/view?mno=&amp;pageIndex=3&amp;rowPageC=0&amp;displayAuthor=&amp;searchCategory=0&amp;schClear=on&amp;startDtD=&amp;endDtD=&amp;searchCondition=1&amp;searchKeyword=\"><span style=\"font-weight: 400;\">lobbied<\/span><\/a><span style=\"font-weight: 400;\"> U.S. officials for an exemption, but Washington remains noncommittal, leaving South Korean firms in a precarious position.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For South Korean manufacturers, Mexico has long been an attractive export hub, offering preferential access to the U.S. market under the U.S.-Mexico-Canada Agreement. Kia\u2019s plant in Monterrey alone ships <\/span><a href=\"https:\/\/www.koreaherald.com\/article\/10432761\"><span style=\"font-weight: 400;\">150,000 vehicles<\/span><\/a><span style=\"font-weight: 400;\"> annually to the U.S., while Samsung and LG operate appliance factories in Mexico\u2019s northern industrial zones. If tariffs erode Mexico\u2019s advantages, South Korean firms may be forced to relocate production or absorb higher costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Seoul faces a diplomatic and economic dilemma. While it seeks to avoid U.S. trade penalties, it must also navigate tensions with Canada and Mexico, key partners in its strategy to diversify global supply chains. The next test will come in April when Washington decides whether to extend its tariff push to South Korea\u2019s core export industries, which could have far-reaching consequences for trade relations and corporate strategy.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/inter-korean-foreign-relations\/\"><span class=\"tag\">Inter-Korean &amp; Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>The U.S. will impose 25% tariffs on Canadian and Mexican goods starting Wednesday, following a month-long delay. President Donald Trump justified the move as necessary to address cross-border drug trafficking, despite sharp criticism from Ottawa and Mexico City. In retaliation, Canada announced $155 billion in countertariffs, with an initial $30 billion in duties taking effect [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2208611,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,28],"class_list":["post-2208610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-inter-korean-foreign-relations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korean firms face fallout as North American trade war escalates - Korea Pro<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korean firms face fallout as North American trade war escalates - Korea Pro\" \/>\n<meta property=\"og:description\" content=\"The U.S. will impose 25% tariffs on Canadian and Mexican goods starting Wednesday, following a month-long delay. President Donald Trump justified the move as necessary to address cross-border drug trafficking, despite sharp criticism from Ottawa and Mexico City. In retaliation, Canada announced $155 billion in countertariffs, with an initial $30 billion in duties taking effect [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/\" \/>\n<meta property=\"og:site_name\" content=\"Korea Pro\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-04T23:00:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-04T04:01:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/03\/eb-2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1870\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"South Korean firms face fallout as North American trade war escalates\",\"datePublished\":\"2025-03-04T23:00:15+00:00\",\"dateModified\":\"2025-03-04T04:01:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/\"},\"wordCount\":353,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/03\/eb-2.png\",\"keywords\":[\"Business &amp; Economy\",\"Inter-Korean &amp; Foreign Relations\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/\",\"url\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/\",\"name\":\"South Korean firms face fallout as North American trade war escalates - Korea Pro\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/03\/eb-2.png\",\"datePublished\":\"2025-03-04T23:00:15+00:00\",\"dateModified\":\"2025-03-04T04:01:34+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/03\/eb-2.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/03\/eb-2.png\",\"width\":1870,\"height\":1000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2025\/03\/south-korean-firms-face-fallout-as-north-american-trade-war-escalates\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"South Korean firms face fallout as North American trade war escalates\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"Korea Pro\",\"description\":\"Be smart about South Korea. 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