Int'l industry leaders oppose proposed U.S. auto tariff

WASHINGTON, July 19 (Yonhap) -- U.S. and international auto industry leaders on Thursday voiced opposition to a proposed tariff on U.S. imports of foreign cars.

Dozens of officials from the U.S. auto industry, foreign auto associations and foreign governments gathered at a public hearing at the U.S. Department of Commerce to present their case against the 25 percent tariff pushed under President Donald Trump on national security grounds.

Among them were representatives from South Korea's auto sector and trade ministry, who argued that the country should be exempted from any tariff under a recently revised bilateral trade deal.

John Hall, who works for South Korean automaker Hyundai Motor at its manufacturing plant in Montgomery, Alabama, pointed out that the White House had acknowledged the improvements the new terms of the Korea-U.S. free trade agreement bring to the American auto industry and national security.

"Some may view Hyundai as a foreign automaker, but I know from experience that we are an integral part of the American automotive industry," Hall said in a statement. "Approximately half of the vehicles we sell in the United States are made in Alabama. We export about 20 percent of the vehicles we make, and our exports have increased over the past five years, helping Alabama become the third largest auto-exporting state."

He said these operations directly support thousands of American jobs and indirectly support thousands more across the country.

Korean-made autos are currently exempt from U.S. duties under the KORUS trade deal, which went into effect in 2012. At the Trump administration's urging, the two countries renegotiated the agreement and announced revisions to it in March, including a further opening of the Korean auto market to the U.S.

The revised agreement has yet to be formally signed.

The Trump administration has invoked Section 232 of the 1962 Trade Expansion Act to launch an investigation into the potential threat of foreign auto imports to national security.

The move is widely seen as an attempt to rally Trump's voter base ahead of the midterm elections in November.

South Korea's auto exports to the U.S. jumped 80 percent from 2011 to US$18.49 billion in 2015, while its imports of American-made cars soared 380 percent from 2011 to $1.68 billion in 2015, according to government data.

Out of 2.53 million Korean vehicles sold abroad last year, about 33 percent were shipped to the North American country, according to data compiled by the Korea Automobile Manufacturers Association.

hague@yna.co.kr
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