Seoul, April 11 || South Korean auto parts suppliers are scrambling to respond to new US tariffs on imported vehicles and automotive parts, industry insiders said on Friday, arguing the tariffs not only pose a serious challenge to automakers, including local industry leader Hyundai Motor Group, but also threaten to disrupt the broader industry supply chain.
The United States' Donald Trump administration began imposing a 25 percent tariff on imported vehicles last week and is set to extend the same rate to auto parts beginning May 3, a move that has disrupted production planning and investment strategies across the sector, reports news agency.
While much of the recent attention has focused on finished vehicle exports, South Korea's parts suppliers are also grappling with mounting uncertainties and risks, according to industry officials.
"We are currently reviewing the possibility of increasing production at our U.S. facility in Alabama," said a manager at a company based in Siheung, Gyeonggi Province, while requesting anonymity for himself and his company. "We have launched an internal task force to review practical responses, and we are in constant communication with Hyundai Motor Group to coordinate strategies."
He noted that the company's products are used in the production of about 320,000 engines annually for Hyundai Motor Group's vehicles in the U.S