US-Canada Tariff Fight Could Spill Over to South Korea; Risks and Opportunities for Autos, Steel, Batteries
Creatrip Team
22 days ago
A sudden US decision to impose 50% tariffs on roughly $20 billion of Canadian cars, trucks, parts and steel—using rarely invoked Section 338 of the Tariff Act—has prompted matching retaliatory duties from Canada on about $20 billion of US goods. Analysts warn this North American tariff war could create both opportunities and risks for South Korea. Short-term, Korean automakers and steelmakers might win market share in North America if US or Canadian prices rise, and Korean battery firms with North American production could gain strategic value if supply chains shift. But prolonged tariffs could raise production costs for Korean plants that rely on cross-border parts flows, reduce demand for Korean-made cars if North American prices and supply-chain disruptions shrink the market, and expose Korean exports in steel and batteries to potential retaliatory US measures. Semiconductors are seen as less directly exposed, though indirect effects (e.g., slower AI data center investment) could hit chip exports. Trade experts urge Seoul to speed up a flagship US investment project (a “first US investment” initiative) and other measures to reduce the risk of becoming a next target under US “America First” trade pressure.
