Korean automakers are breathing a sigh of relief following the announcement that the U.S. will delay a decision on auto tariffs for six months.

With the delay, Korean car exports to the U.S. will not be hit with tariffs as high as 25 percent for at least the next half year. Also, the clear focus placed on Japan and the European Union has encouraged Korean exporters.

The fact that the U.S. mentioned that the revised South Korea-U.S. free trade agreement will be helpful toward better responding to national security threats may signal that Korea will eventually be exempt from tariffs.

South Korea shipped some 810-thousand vehicles to the U.S. in 2018, accounting for 33 percent of total car exports. 

If the U.S. slaps high tariffs on Korean made cars, their price competitiveness will suffer a blow in the U.S. market which will decrease sales and sharply contract production at home.

In a report last year, the Hana Institute of Finance, a domestic think tank, forecast that 25 percent tariffs on imported Korean cars will raise their export price by ten to 12 percent, causing losses of nearly two-point-nine trillion won to Korea's automobile industry.