U.S. President Donald Trump raises his fist upon arrival in West Palm Beach, Fla., Friday. Reuters-Yonhap

Korea faces intensifying headwinds from U.S. President Donald Trump's proposed auto tariffs, as cars account for the largest portion of Korea's exports to the world's largest economy.

Last week, Trump announced his plan to impose tariffs on auto imports as early as April 2. This will deal a severe blow to Korea's domestic car brands, such as Hyundai Motor, Kia and Genesis, as their sales and revenue reliance on the United States are on the gradual rise.

The carmakers have been exempt from any tariffs on their exports to the U.S. under the Korea-U.S. Free Trade Agreement. However, given Trump's unpredictable trade policies, there is a strong likelihood that he may introduce a string of other measures to justify the imposition of auto tariffs anytime soon.

According to data from the U.S. Department of Commerce, Korea exported more than 1.53 million cars to the U.S. in 2024, worth a total $36.6 billion (52 trillion won). This made Korea the third-largest auto exporter to the U.S., following Mexico and Japan.

In contrast, U.S. vehicle exports to Korea were valued at just $2.1 billion during the same period, resulting in a substantial trade deficit for the U.S.

Since his return to the White House in January, Trump has outlined plans to impose trade penalties on steel and aluminum, along with reciprocal tariffs — measures that are directed at Korea.

However, the proposed auto tariffs are raising much more significant concerns in Korea, as the country's heavy reliance on a few key exports, such as vehicles and semiconductors, makes it particularly vulnerable to escalating trade pressures from Trump, which could ultimately undermine the nation's overall export competitiveness.

Data from the Korea International Trade Association showed the nation's total auto exports amounted to $70.79 billion last year, with those to the U.S. accounting for nearly half of the total. Car exports to the U.S. were higher than those of semiconductors, Korea's second-largest export item.

The Hyundai Motor logo hangs over a long row of cars at a dealership in Centennial, Colo., Dec. 20, 2020. AP-Yonhap

Experts have expressed a gloomy outlook on growing trade tensions amid the prospect of renewed trade pressure under Trump.

"The auto industry is inarguably a fundamental pillar driving growth of the Korean economy, and its strategic importance is ever-growing," said Kim Pil-soo, an automotive technology professor at Daelim University College.

"But Trump's escalating trade pressure puts a damper on the industry. Carmakers such as Hyundai Motor are also coming up with their own countermeasures either by increasing their U.S. investments or diversifying their sales channels to other countries."

However, the reality is tough for Korean carmakers, as they cannot achieve noteworthy sales growth in other markets in a short period of time, the expert said.

Hyundai Motor Group is also becoming more vigilant amid growing business uncertainties in the U.S., as they are feared to incur trillions of won in losses in the aftermath of the tariffs.

Chung Euisun, executive chair of the group, recently visited the U.S. and met with influential figures under the Trump administration. Notably, he met with Donald Trump Jr., the eldest son of the U.S. president, during a PGA tour event in San Diego sponsored by Genesis, Hyundai's luxury car brand.

Cars are parked for exports at a storage yard in the southeastern port city of Ulsan, Tuesday. Yonhap

The move is seen as part of his efforts to strengthen lobbying acts to minimize possible repercussions from the upcoming tariff.

In addition, Hyundai Motor CEO Jose Munoz on Saturday highlighted Hyundai's contributions to the U.S. economy, saying it is investing billions of dollars in America and creating tens of thousands of high-paying jobs there.

"Through our growing U.S. manufacturing footprint, Hyundai Motor Group (HMG) produced more than 700,000 vehicles in America last year," he said on social media, adding that HMG creates and supports 570,000 American jobs nationwide across industries.

"HMG is a key player in industries such as mobility, construction and emerging technologies and has invested $20.5 billion in America."

The government will send a senior trade official to the U.S., Monday, to coordinate trade and economic issues.

According to the government, Deputy Trade Minister Park Jong-won will meet with officials from the U.S. Department of Commerce and the U.S. Trade Representative to deliver Korea's stance on Trump's tariff plan.

This marks the first visit by a high-ranking trade official from Korea to the U.S. since Trump's inauguration in January.

However, industry officials noted that Trump could face significant hurdles in imposing tariffs on imported vehicles, as some U.S. brands might suffer substantial losses as a result of the policy.

"For instance, General Motors (GM) Korea exports more than 90 percent of its local production to the U.S.," an industry official said. "If Trump slaps tariffs on all imported vehicles, GM Korea will be hit hard and may end up giving up its business in Korea."