GM Stock Ticks Up as U.S.–South Korea Trade Deal Eases Tariff Concerns

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General Motors (GM) shares saw a modest increase following the announcement of a new trade agreement between the United States and South Korea. The deal, confirmed by President Donald Trump, is expected to benefit American automakers, particularly GM, by lowering trade barriers and securing U.S. interests in international manufacturing and exports.

The agreement sets a 15% tariff for South Korean imports while ensuring that American products will not face similar tariffs when entering the South Korean market. The deal also includes commitments from South Korea to invest in the United States and to purchase American energy products, which aligns with broader efforts to boost domestic energy and manufacturing sectors. In a post on Truth Social, Trump stated, “I am pleased to announce that the United States of America has agreed to a Complete Trade Deal with the Republic of Korea.”

For General Motors, this development brings tangible economic relief. The automaker maintains multiple operations in South Korea, including two vehicle assembly plants, and regularly imports vehicles produced there into the U.S. Under the previous arrangement, imported vehicles from South Korea were subject to a 25% tariff. With the new deal in place, those costs are significantly reduced, potentially improving margins and making GM’s South Korean-built vehicles more competitive in the American market.

In response to the deal, GM expressed support for the outcome, noting the value of continued cooperation between the two nations. “GM appreciates that negotiators have reached an agreement on trade between the U.S. and South Korea,” the company told Barron’s in a statement. “GM’s long-standing operations in Korea produce high-quality crossovers that complement our U.S. vehicles, strengthening GM’s global competitiveness and benefitting American customers and our U.S. operations.”

Following the news, GM’s stock rose 0.8% in premarket trading to $52.55. Broader markets also reacted positively, with futures for the S&P 500 and the Dow Jones Industrial Average climbing 0.9% and 0.4%, respectively.