South Korea Seeks Relief from U.S. Auto Tariffs

Level: Beginner | Date: April 25, 2025

Read the article aloud on your own or repeat each paragraph after your tutor.

What Happened?

In April 2025, the United States imposed a 25% tariff on imported cars, including those from South Korea. This means South Korean cars sold in the U.S. became more expensive. The U.S. government said the tariffs are to protect American car companies.

Why Is South Korea Concerned?

South Korea is worried about these tariffs. The country sells many cars to the U.S., and the new tariffs make it harder for Korean car companies like Hyundai and Kia to compete. South Korea’s government is talking with the U.S. to find a solution.

What Is South Korea Doing About It?

To help its car industry, South Korea announced a $2 billion support plan. This money will assist carmakers affected by the tariffs. Hyundai is also moving some car production to the U.S. to avoid the tariffs.

What’s Next?

Both countries are working on a trade agreement to resolve the issue. They hope to reach a deal by July. South Korea wants the U.S. to remove the tariffs, and the U.S. wants more investment from South Korea.

Why It Matters

The outcome of these talks will affect car prices and jobs in both countries. Many people are watching closely to see what happens next.

This article was inspired by recent coverage from Reuters on South Korea’s response to U.S. auto tariffs.

Vocabulary

tariff (n) – a tax on imported goods. The U.S. imposed a tariff on foreign cars.
import (v) – to bring goods into a country. South Korea imports many products from abroad.
export (v) – to send goods to another country. South Korea exports cars to the U.S.
industry (n) – a group of businesses that produce similar products. The car industry is important to South Korea.
government (n) – the group of people who control a country. The government is negotiating with the U.S.
support (n) – help or assistance. The company received financial support.
agreement (n) – a decision made by two or more parties. They signed a trade agreement.
investment (n) – money put into a business to make a profit. Hyundai made an investment in the U.S.
compete (v) – to try to be more successful than others. Companies compete in the global market.
solution (n) – an answer to a problem. They are looking for a solution to the tariff issue.

5 Questions about the article

What did the U.S. do in April 2025 regarding car imports?
Why is South Korea concerned about the new tariffs?
How is South Korea supporting its car industry?
What is Hyundai doing to address the tariff issue?
What are the two countries hoping to achieve by July?

5 Questions about the topic

How do tariffs affect the price of imported goods?
Why might a country impose tariffs on foreign products?
What are the potential benefits of moving production to another country?
How can trade agreements help resolve disputes between countries?
What impact do tariffs have on consumers?

Suggested Phrase

trade agreement – a deal between countries about buying and selling goods. The two nations signed a trade agreement to reduce tariffs.

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