The governments of the United States and South Korea have concluded a landmark trade agreement that drastically changes the automotive sector. On August 4, 2025, official representatives finalized an agreement reducing import tariffs from 25% to 15% for motor vehicles.
A key element of the agreement is the large-scale investment commitments worth 350 billion dollars. Nearly 150 billion will be directed towards critical industries such as shipbuilding, semiconductors, and energy, while the remaining funds will support the automotive industry.
The relief will directly affect models from leading Asian manufacturers – Hyundai, Kia, and Genesis, as well as certain Chevrolet SUV models. The new trade conditions aim to significantly facilitate the access of Korean exporters to the American automotive market.
The agreement fits into a series of similar trade arrangements with Japan and the European Union. Reactions among American industrial circles are mixed – while some businesses welcome the changes, the UAW union expresses concerns about potential weakening of local production.
International automotive companies like BMW are already predicting steady global interest. Despite some hesitation, most analysts expect a slight increase in sales, which could change the existing market trends.