Synopsis
According to recent data, South Korea's auto parts exports to the United States hit a record high in 2024. This growth occurs amid concerns over potential auto tariffs. Experts suggest South Korean products may benefit as substitutes for Chinese parts.Key Takeaways
- South Korea's auto parts exports to the U.S. reached US$8.22 billion in 2024.
- Exports have shown consistent growth over the past few years.
- The U.S. accounted for 36.5% of South Korea's total auto parts exports.
- The European Union is the second-largest market for South Korean auto parts.
- Concerns arise over potential tariffs from the U.S. administration.
Seoul, Feb 23 (NationPress) South Korea's auto parts exports to the United States reached an all-time high in 2024, according to data released on Sunday. Experts are now considering the potential consequences of impending auto tariffs from the U.S. Automotive parts exports to the U.S. totaled US$8.22 billion last year, an increase from $8.08 billion in 2023, as reported by the Korea Auto Industries Coop. Association and covered by the Yonhap news agency.
This figure has been consistently rising from $6.91 billion in 2021 and $8.03 billion in 2022.
In 2024, shipments to the U.S. comprised 36.5 percent of South Korea's total auto parts exports, which amounted to $22.55 billion.
The European Union comes in as the second-largest market for South Korean auto parts, accounting for 17.3 percent of total exports last year, followed by Mexico with 9.5 percent and China at 6.4 percent.
This report emerges amidst worries that the Trump administration plans to enforce 25 percent tariffs on all auto imports could severely impact the exports and the automotive sector in South Korea.
“Challenges are likely to arise, either directly or indirectly, since auto parts are closely linked to finished vehicles,” remarked an industry representative.
Last year, South Korea's total auto exports were valued at $70.78 billion, with 49.1 percent of these going to the U.S.
However, some analysts remain optimistic, suggesting that South Korean auto parts could serve as a replacement for Chinese components amid the escalating trade conflict between the U.S. and China.
“While higher tariffs will be applied to numerous countries, including South Korea, even greater 'tariff bombardments' will hit China,” noted Kim Kyung-yoo, a senior researcher at the Korea Institute for Industrial Economics and Trade.
“With a 60 percent uniform tax on imported Chinese auto parts, we anticipate some advantages for South Korea as its products replace those from China,” Kim added.
