BY COMFORT OGBONNA
Hyundai Motor President Sung Kim on Tuesday called on South Korea’s lawmakers to quickly approve legislation tied to a $350 billion U.S. investment package, warning that tariff pressure from Washington could intensify despite recent legal setbacks faced by the White House.
Kim made the appeal during a meeting with opposition lawmakers and officials from business associations, where discussions focused on advancing the large-scale investment plan. The package forms part of a broader trade agreement reached between Seoul and Washington last year, under which the United States agreed to reduce tariffs on certain goods from 25% to 15%.
His remarks come at a sensitive time for global trade relations. U.S. President Donald Trump has warned that countries attempting to “play games” with existing trade agreements could face steeper tariffs. The warning followed a decision by the U.S. Supreme Court to strike down his earlier universal tariffs, a ruling that reshaped the legal landscape of U.S. trade policy.
Despite the court’s decision, uncertainty remains. The South Korean government reaffirmed on Monday that it intends to stick to the trade agreement reached last year, signaling its commitment to maintaining stable economic ties with the United States.
Kim, however, cautioned that the invalidation of reciprocal tariffs could prompt Washington to increase sector-specific duties instead. He told lawmakers that there may be heightened pressure to raise tariffs on industries such as automobiles and steel, even if broader universal tariffs have been nullified.
“I think that with the reciprocal tariffs now nullified, there may be increased pressure to raise sector-specific tariffs,” Kim said, emphasizing the risks facing Korean manufacturers.
He warned that if tariffs were restored to 25%, the competitiveness of South Korean companies would inevitably weaken. This challenge, he noted, comes at a time when the global automotive industry is already undergoing profound transformation, including the rapid shift toward electric vehicles and intensifying competition in autonomous driving technologies.
Even before the Supreme Court ruling, Seoul had been working urgently to pass the necessary legislation to activate the U.S. investment plan. The push gained momentum after Trump threatened to raise tariffs on automobiles, pharmaceuticals, and other products to 25% from 15%, accusing South Korea of failing to properly implement the trade agreement.
Major South Korean automakers, including Hyundai Motor Company and its affiliate Kia Corporation, have been actively lobbying to ensure that tariff structures in the crucial U.S. market provide a level playing field. They are particularly concerned about maintaining competitiveness against Japanese and European rivals, who also rely heavily on access to American consumers.
Kim described the auto industry as being in the midst of a “major crisis” triggered in part by U.S. tariffs introduced last year. He said sectoral tariffs, particularly on steel and automobiles, are highly likely to remain in place, even as broader trade policies shift.
The financial impact has already been significant. According to Kim, Hyundai and Kia together absorbed a combined 7.2 trillion won, or approximately $4.98 billion, in losses last year due to U.S. tariffs. He warned that the burden could grow further this year if duties are reinstated at the 25% level.
Following the Supreme Court ruling last Friday, Trump quickly introduced a new 15% universal import duty and ordered fresh investigations that reignited concerns about potential tariffs on automobiles, semiconductors, and other strategic sectors. These moves have added another layer of unpredictability to global trade flows and corporate planning.
After meeting with Kim, lawmaker Park Soo-young told reporters that the Hyundai president believes the court decision may actually accelerate the administration’s push for targeted tariffs. The possibility of renewed trade friction has heightened the urgency in Seoul to finalize legislation supporting the multibillion-dollar investment initiative.
For South Korea’s export-driven economy, and especially for its automotive giants, the coming months could prove critical as policymakers navigate a shifting trade environment shaped by legal battles, political pressure, and intensifying global competition.
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