U.S. Tariffs Unlikely to Be Imposed on South Korean Cars

The American Automotive Policy Council (AAPC) recently said that tariffs are unlikely to be imposed on cars imported from South Korea despite Section 232 of the Trade Expansion Act of 1962.

The Korea Automobile Manufacturers Association had a video conference with the AAPC on Sept. 28 and the European Automobile Manufacturers Association (ACEA) on Oct. 6. They discussed issues such as post-COVID-19 trends of the industry, environmental regulations and autonomous driving.

“The AAPC is also negative about Section 232,” AAPC President Matt Blunt said at the conference, adding, “The act is unlikely to lead to tariffs on South Korean cars in that the U.S. government is using the section as a tool for EU market opening.”
 

The AAPC president also said that the Ministry of Environment of South Korea is currently tightening environmental regulations and this can act as a trade barrier against U.S. companies in South Korea. “In March this year, the United States lowered its annual rate of fuel economy improvement applied to passenger vehicles from 5 percent to 1.5 percent, and South Korea’s fuel economy and greenhouse gas regulations preannounced in August this year are the second-strictest in the world, second only to those of the European Union and not sufficiently considering the circumstances of U.S. companies centering around internal combustion engine vehicles,” he continued to say.