Amid the US Tariffs’ impact on countries like India and China, which are facing Punitive tariffs imposed by the Trump-led administration, South Korea has witnessed booming used car exports, easing the impact of US Tariffs on new car sales.
Used car exports rose 35 per cent to $711.5 million in August
ens of Thousands of vehicles are being packed for shipment to other countries via South Korea’s largest used car export hub in Icheon, west of Seoul.
Undoubtedly, South Korea’s auto shipments to the US have decreased for six consecutive months since President Donald Trump announced 25 percent US tariffs.
However, according to the trade ministry and customs data, the global car exports have risen for three straight months, supported by record-high second-hand vehicle sales, which accounted for a quarter of the total auto exports by volume and 13 per cent by value. The trade ministry stated that South Korea exported $5.5 billion of cars in August, an increase of 9 per cent from a year earlier and the highest monthly total on record. Surprisingly, used car exports rose 35 per cent to $711.5 million in the same month, according to the Korea Used Car Distribution Research Institute
“US tariffs haven’t really hurt us”, says a trader
Traders and experts stated that the used vehicle growth is largely driven by voracious demand for older Hyundai and Kia cars in Russia and in the Middle East, and a weaker won. “Exports to the US don’t account for much of our business,” Demand from other countries is strong, so the tariffs haven’t really hurt us, said Seol, a trader. According to government data and traders, South Korea exports most of the used cars that are sold to the Middle East, Central Asia, and Russia.