Seoul, March 7 : The government will come up with measures next month to respond to the United States’ plan to impose tariffs on auto imports, the industry ministry said on Friday, as the new U.S. tariffs are expected to deal a severe blow to the South Korean automotive industry.
The Ministry of Trade, Industry and Energy announced the move at a meeting with officials from automakers, including local industry leader Hyundai Motor Co. and GM Korea Co., the South Korean unit of General Motors Co., according to ministry officials, reports Yonhap news agency.
In the meeting, attendees assessed that the proposed U.S. tariffs on auto imports will likely slow down South Korea’s exports to the U.S., also adversely affecting the local auto-parts making industry, the ministry said.
The Korean automakers urged the government to emphasise the contributions they have made to the U.S. economy through massive investments there, calling for comprehensive efforts to respond to Washington’s tariff scheme.
They also called for various support measures to minimise the impact on the industry, such as diversification of export destinations and policy financing, the ministry said.
Meanwhile, South Korean stocks traded lower late Friday morning on persisting uncertainties over the US administration’s tariff plans.
Overnight, major US shares sank as investor sentiment soured after the Donald Trump administration went back and forth on its plan to impose tariffs on Canadian and Mexican imports, increasing uncertainties in the global economy.
In Seoul, market bellwether Samsung Electronics lost 0.37 percent, and its chipmaking rival SK hynix dropped 1.46 percent.
Bio giant Samsung Biologics tumbled 2.3 percent, while top automaker Hyundai Motor slipped 0.81 percent.
Leading internet portal operator Naver dipped 2.05 percent, and Kakao, the operator of the country’s dominant mobile messenger, sank 2.33 percent.
Among a few gainers was steel giant POSCO Holdings, which shot up 7.95 percent, and leading battery maker LG Energy Solution that advanced 1.8 percent. (IANS)