SEOUL: South Korea and its automobile industry have formally requested exemption from new US port fees targeting foreign-built vehicle carriers.
The fees, announced by the US Trade Representative on April 17, aim to penalise China-linked ships and fund domestic shipbuilding. However, they also affect non-Chinese carriers, raising concerns among global automakers.
The Korea Automobile & Mobility Association, representing Hyundai, Kia, GM, and Renault’s South Korean units, warned that the fees would add financial strain to imported vehicles already facing 25% tariffs.
In a statement, the association said, “Such a measure risks imposing undue costs on companies, workers and consumers in both countries.”
South Korea’s trade and maritime ministries echoed these concerns, arguing that the policy could disrupt trade relations.
The auto association also pointed to Hyundai Motor Group’s $21 billion US investment plan, announced earlier this year, suggesting the fees might discourage future contributions from Korean firms.
The US has framed the fees as part of efforts to counter China’s maritime dominance and revive domestic shipbuilding. However, industry groups argue the broad application could harm global trade dynamics. - Reuters
