US duties on Korean cars puts Seoul at a competitive disadvantage in largest overseas market amid tense trade talks

The U.S. began imposing a 15% tariff on Japanese vehicles on Tuesday even as South Korean auto exports remain subject to a 25% rate, threatening lasting damage to a core export industry and exposing the Lee Jae-myung administration’s narrowing strategic options.

The tariff gap, born from separate investment-for-access deals, is already reshaping automotive trade flows and investment decisions. 

The U.S. began imposing a 15% tariff on Japanese vehicles on Tuesday even as South Korean auto exports remain subject to a 25% rate, threatening lasting damage to a core export industry and exposing the Lee Jae-myung administration’s narrowing strategic options.

The tariff gap, born from separate investment-for-access deals, is already reshaping automotive trade flows and investment decisions. 

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