Following the start of the Trump administration’s second term, the tariff landscape facing Korea’s automotive industry has once again entered a period of heightened volatility. Toward the end of 2025, Korea secured a temporary reduction in tariffs on Korean-made vehicles from 25% to 15%, contingent on bilateral negot

On February 12, Trump administration officials signed a final reciprocal trade agreement that confirmed a 15% U.S. tariff rate for imports from Taiwan, while committing Taiwan to a schedule for eliminating or lowering tariffs on nearly all U.S. goods, removing non-tariff barriers on motor vehicles and accepting U.S.

On February 12, a report from the Federal Reserve Bank of New York concluded that 90% of the new tariffs imposed on imported goods are paid by American consumers and companies, countering the Trump administration’s argument that tariffs are paid by foreign countries.
The report evaluated how tariffs impacted the econ

On February 10, the China Chamber of Commerce to the EU (CCCEU) took note that the European Commission accepted Volkswagen (Anhui)'s price undertaking for exports of battery electric vehicles, allowing the relevant model to be exempted from countervailing duties provided that the minimum import price conditions are m

On February 11, the U.S. House of Representatives narrowly passed a measure disapproving of President Donald Trump's tariffs on Canada, a rare rebuke of the president and leaders of his party in the Republican-majority House.
Lawmakers voted 219 to 211 in favor of a resolution to terminate Trump's use of a national e

On February 10, the European Commission announced that Volkswagen (Anhui) can export its CUPRA Tavascan model into the EU at or above its proposed minimum import price. It will be exempt from the countervailing duties imposed on BEV imports from China.
In addition to selling at a minimum import price, Volkswagen (Anh

On February 9 in a post on Truth Social, President Trump threatened to prevent the Gordie Howe International Bridge between Detroit and Windsor, Ontario from opening unless Canada agrees to an economic deal that he thinks benefits the U.S.
Detroit's OEMs have long supported construction of a second bridge in Detroit

On January 26, BYD Auto Co. filed a lawsuit at the U.S. Court of International Trade in New York (Case No. 26-00847) against the U.S. government challenging President Trump's authority to impose tariffs, and requesting a refund for all levies paid since April 2025, according to court documents.
In the lawsuit, four o

Kia is discontinuing the plug-in hybrid (PHEV) version of the Niro in the U.S., while the standard hybrid (HEV) and all-electric (EV) models remain in the portfolio. Kia cited “changing market conditions” for the decision to drop the plug-in hybrid Niro, though it will still offer two plug-in hybrids, the Sportage an

On February 7, India and the United States agreed on a framework for an interim agreement on reciprocal trade that includes specific provisions for automotive and related industries. India will receive a preferential tariff rate quota for automotive parts currently subject to the United States tariff imposed under Pr

On February 2, 2026, Prime Minister (PM) Narendra Modi spoke with President Trump and thanked him for reducing tariffs on Indian products to 18%. The tariff reduction was announced following the call between the two leaders. He expressed that he looks forward to working closely with Trump to take the India-US partner

Starting in January 2026, Mexico officially raised tariffs on Light Vehicles (LVs) from 20% to 50%, applying only to countries that do not have a Free Trade Agreement (FTA) in place. While the change in rate affects many markets, we expect the most significant impact to be felt in China and India. These measures have

On January 27, multiple sources reported that the Deputy Minister of Trade, Industry and Competition, South Africa, stated that the government is considering imposing new tariffs on imported cars from India and China.
South Africa is considering imposing tariffs of up to 50%. The government would use duties to protec

On January 26, President Trump announced on Truth Social that he would increase tariffs on South Korean imports to 25% from 15%, accusing the country’s legislature of failing to enact a trade deal the two countries struck in 2025. The abrupt reversal affects automotive, lumber, pharmaceutical, and all other imports c

On January 27, 2026, the Prime Minister of India and the European Commission President announced the conclusion of the India-EU Free Trade Agreement, which includes a carefully calibrated automotive liberalisation package. Car tariffs will gradually reduce from 110% to as low as 10%, while tariffs on car parts will b

On January 24 in a post on Truth Social, U.S. President Donald Trump threatened to impose 100% tariffs on Canada, warning it not to make a trade deal with China or face the increased import levies.
"If Governor Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the Un

Volkswagen AG’s plans for a possible Audi manufacturing plant in the U.S. are not progressing, according to VW CEO Oliver Blume on January 25, amid the weight of President Trump’s tariffs, which he says have cost EUR 2.1 billion (USD 2.5 billion) in the first nine months of 2025, as well as talks on local incentives

Canada and China signed an agreement January 16 that will see Canada allow 49,000 Chinese EVs into the country at a 6.1% tariff rate, down from 100% set in 2024, with Canadian Prime Minister Mark Carney saying the deal is an “opportunity” for Ontario and autoworkers.
In a January 18 press conference in Doha, Qatar, C

On January 21, it was reported that Brazil’s import tariffs on electric and hybrid vehicles will rise from 30% to 35% starting in July, which could push up prices of imported EVs/HEVs by up to 8%.
The outlook, presented by Bright Consulting, also mentions that the automotive market is becoming more competitive and st