The government in Seoul estimates that Donald Trump's duties 25 % duties on the import of cars will make the Korean economy “a significant blow”.
The package includes Financial support for car manufacturers of up to 15 trillion won ($ 10.18 billion) in 2025 – higher than the planned assistance worth 13 trillion won. In addition, by June they will be reduced from 5 percent. up to 3.5 percent Taxes for the purchase of cars, and subsidies for electric vehicles will increase from 20-40 percent. up to 30-80 percent Price discount, with an extension of the duration until the end of the year.
These steps are aimed at stimulating domestic demand. The government also announced intensive negotiations with the USA.
Trump announced the introduction of 25 % duties for imported passenger cars and light trucks from Thursday.
“Considering the fact that cars and car parts are the most important export commodity of South Korea to the USA, the decision to impose a 25 % duties on these products can deal a serious blow to our automotive industry,” reads the government's statement. The authorities in Seoul admitted, however, that at this stage it is difficult to estimate the exact amount of losses.
The government also announced active support for car manufacturers' efforts in expansion to export markets in the so -called Global South – developing African, Latin American and Asia, where the demand for cars is growing.
Last year, the value of exports of Korean cars to the US was $ 34.7 billion, which accounted for 49 percent. total export value of Vehicles from South Korea
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