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GM Korea faces uncertain future on eve of Trump's auto tariff

Published: 01 Apr. 2025, 17:39

Pictured is GM Korea's plant in Bupyeong District, Incheon. [YONHAP]

GM Korea is in a difficult position ahead of U.S. President Donald Trump's incoming 25 percent auto tariffs.

The company is heavily reliant on U.S. exports compared to other carmakers operating in Korea. Out of 499,559 vehicles produced at GM Korea's plants in Changwon, South Gyeongsang, and Bupyeong District, Incheon, 83.8 percent were exported to the United States. The 24,800 cars sold in Korea made up only 5 percent of its sales.

The Industrial Bank of Korea estimated that the tariff would cut Korea's annual auto exports by 18 percent, representing a value of $6.14 billion. Many speculate that the manufacturer will have no choice but to pull out of Korea if it's unable to obtain an exemption.

The 25 percent auto tariff, which Trump announced last week, would apply to all car models produced outside of the United States, has spooked a number of Asia's most prominent auto manufacturers. Hyundai Motor and Kia were down 4.38 percent and 3.45 percent, respectively, at the day's closing bell. Japan's Toyota Motor and Nissan Motor also plummeted following the news.

The tariff is set to take effect on April 3.