South Korea’s auto parts exports to the United States reached a record $8.22 billion in 2024, but concerns are growing that the figure could drop as the Trump administration pushes to impose a 25% tariff on imported vehicles.
According to the Korea Auto Industries Coop. Association’s analysis of Korea International Trade Association (KITA) data released Feb. 23, South Korea’s auto parts exports to the U.S. climbed from $6.91 billion in 2021 to $8.03 billion in 2022 and $8.08 billion in 2023, before hitting last year’s all-time high.
The U.S. remained the largest market for South Korean auto parts, accounting for 36.5% of the total $22.54 billion in exports. The European Union followed with $3.89 billion (17.3%), trailed by Mexico at $2.15 billion (9.5%), China at $1.45 billion (6.4%), ASEAN nations at $1.3 billion (5.8%), and India at $921 million (4.1%).
The U.S. also dominated South Korea’s finished vehicle exports. Of the $70.78 billion in total car exports last year, $34.74 billion, or 49.1%, went to the U.S.
However, industry experts warn that the proposed 25% tariff could undermine the competitiveness of South Korean auto parts, prompting U.S. automakers to ramp up local production.
“The tariff would not only reduce parts sales but also force suppliers to consider establishing overseas production facilities, increasing investment costs,” an industry official said.
Some analysts, however, suggest the ongoing U.S.-China trade dispute could benefit South Korea, with Korean auto parts emerging as an alternative to Chinese products.
