GM, Hyundai, Kia Escape US Tariffs

Feb. 18, 2020—A safe haven for automakers to import vehicles to the U.S. tariff-free is South Korea, reported The Detroit Free Press.

South Korean-made vehicles are forecast to account for about 5.5 percent, or 923,000, of U.S. vehicle sales this year.

General Motors is the only U.S.-based automaker that imports South Korean-made vehicles to the United States. The company accounted for roughly 1 in every 4 vehicles coming from South Korea last year.

Despite South Korea’s tariff-free status, automakers aren’t flocking there due to the country’s tough labor unions that are known for striking, as well as benefits of avoiding tariffs not outweighing the associated costs of moving there.