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Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Hyundai i30 N: This is the 271-horsepower hot hatch we won't get

Hyundai has finally taken the wraps off of its very first N-badged car, the i30 N, along with many of the car's features and specs. Visually, the car has subtle changes including larger grilles in the front bumper, a front spoiler with red trim, black headlight housings, new side skirts, a larger rear wing, and a more sculpted rear bumper. The car can also be fitted with either 18- or 19-inch wheels. Inside you'll find heavily bolstered seats, blue buttons on the steering wheel for driving modes, blue stitching on the seats and trim, and aluminum pedals. Performance-wise, the i30 N should be pretty potent with a turbocharged 2.0-liter four-cylinder making 271 horsepower and 260 pound-feet of torque. That's nearly 20 more horsepower than the Focus ST, and about 50 horsepower more than the GTI Sport. The Focus ST does have 10 more pound-feet of torque, and the GTI Sport roughly matches the twist output. The i30 N channels its power through a six-speed manual transmission and electronic limited-slip differential to the front wheels only. View 6 Photos To make the most of all this power, Hyundai bestowed an array of electronic aids. The sportier suspension features electronically adjustable shocks to improve ride or handling depending on preferences. An automatic rev matching system is included for flawless, smooth, quick downshifts. The i30 N also has a variable exhaust system for quiet cruising or loud hustling. All of the above features along with steering feel and stability control sensitivity can be adjusted by selecting one of the car's five driving modes: Eco, Normal, Sport, N, and N Custom. There's even a launch control function. Unfortunately, we won't be getting Hyundai's hot hatch here in America, despite the fact that we already have a version of the regular i30 in the form of the Elantra GT. But we know that Hyundai is working on an N version of the Veloster, and we expect that N car to make the trip Stateside. It will probably have the same engine found in the i30 N, just in a funkier body. And if it has the same engine, we wouldn't be surprised if it comes with most of the i30 N's handling upgrades and gizmos. Related Video: Hyundai Hatchback Economy Cars Performance hyundai elantra gt hyundai i30 Hyundai N

Hyundai, Kia to temporarily close U.S. plants in path of Irma

SEOUL — South Korea's Hyundai and sister car maker Kia said on Monday they planned to temporarily shut down plants in the United States to avoid potential damage from Hurricane Irma. The shut down comes at a time Hyundai's U.S. sales have fallen more than the market average, and after it recently announced plans to expand its SUV lineup and launch a pickup truck in the market in an attempt to reverse the slide. In a statement, Hyundai Motor said it would suspend operation of its Alabama plant for two days - between Monday and Wednesday — while Kia Motors will stop operation of its Georgia plant for one day - between Monday and Tuesday. The suspension is expected to result in lost production of about 3,000 vehicles for both, the Yonhap news agency earlier said on Monday, citing a Hyundai Motor group spokesman. A Hyundai spokeswoman declined to comment on the number. Hurricane Irma took aim at heavily populated areas of central Florida on Monday as it carved a path of destruction through the state with high winds and storm surges that left millions without power, ripped roofs off homes and flooded city streets. Hyundai's U.S. sales are down nearly 11 percent this year through July 31, worse than the overall 2.9 percent decline in U.S. car and light truck sales. Sales of the Sonata, once a pillar of Hyundai's U.S. franchise, have fallen 30 percent through the first seven months of 2017. In contrast, sales of Hyundai's current SUV lineup are up 11 percent for the first seven months of this year. Reporting by Joyce LeeRelated Video: Plants/Manufacturing Hyundai Kia alabama