[News Today] Dual tariffs on cars, steel expected

[LEAD]
Tomorrow morning Korea time, the United States will announce new reciprocal tariffs by country. This move could significantly impact South Korea's exports, especially in the vital American market. In particular, the automobile and steel industries face the prospect of double tariffs.

[REPORT]
Last week, Hyundai Motor finished the construction of its new factory in the U.S. state of Georgia.

President Donald Trump attributed the automaker's large investment to his tariff policies.

Donald Trump / U.S. President
...which will soon produce more than one million American-made cars every single year. Cars are coming into this country at levels never seen before.

Trump added he would soon impose a 25% tariff on cars.

This would be in addition to reciprocal tariffs.

Tariffs are expected to be up to 20%. If reciprocal tariffs are added, then the current 0% tariff on cars could soar past 40%.

Hyundai says prices of its vehicles sold in America could be raised.

The impact will spread to the auto parts sector as well.

Lee Taek-seong / Korea Auto Industries Cooperative Association
The 25% tariff is already a burden for the auto sector. Additional reciprocal tariffs would make the situation even more difficult.

Many home appliances contain steel parts. With a 25% tariff already on steel, adding reciprocal tariffs to the appliances themselves would seriously hurt their price competitiveness in the U.S. market.

Hyundai Steel and POSCO plan to build factories in the U.S., while home appliance makers such as Samsung and LG plan to expand production in America.

However, all this takes time.

Washington says tariffs will differ by country.

Jang Sang-sik / Korea International Trade Association
The U.S. will probably impose reciprocal tariffs first and negotiate later whether to lower them in line with each country's situation.

Meanwhile, Acting President Han Duck-soo has met with the chiefs of the nation's top four conglomerates to call for joint efforts to overcome challenges through cooperation between the government and the private sector.