SEOUL, July 09 (AJP) - South Korea’s agricultural machinery industry is bracing for a major blow after the United States announced it would impose a 25 percent retaliatory tariff on all Korean imports beginning August 1, a move that threatens to disrupt one of the country's most export-reliant sectors.
Among the hardest hit are leading tractor manufacturers Daedong and TYM, both of which derive a substantial portion of their revenue from the North American market.
Daedong, whose exports totaled 957.7 billion won ($696 million) in 2023, saw approximately 74 percent of its total revenue that year come from overseas shipments. In 2024, exports made up about 65.3 percent of sales, with nearly 80 percent of that volume headed to North America.
The company’s strategic dependence on the U.S. market remains clear: in the first quarter of 2025, Daedong’s North American unit held a 10.8 percent share of the region’s tractor market, highlighting the scale of its exposure to the looming tariffs.
TYM, another major player in the sector, finds itself in a similarly vulnerable position. The company posted export ratios of 71 percent in 2023, 62 percent in 2024, and 65 percent in the first quarter of this year. North America accounted for 60.2 percent of TYM’s revenue in the first quarter of 2025.
The companies now face a dual challenge: mitigating the immediate financial blow from tariff-related cost increases while safeguarding their long-term competitiveness.
Both Daedong and TYM are cautiously weighing price increases in the U.S. market. TYM raised prices earlier this year in response to climbing raw material and shipping costs, while Daedong is expected to implement price adjustments in the second half of 2025.
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