South Korea on Wednesday announced emergency support measures for its auto sector, seeking to reduce the blow of U.S. President Donald Trump’s tariffs on a sector that has seen years of sharply rising exports to the United States.

The measures include financial support for the auto industry as well as tax cuts and subsidies to boost domestic demand, while the government also vowed efforts to negotiate with the U.S. and help expand markets.

Trump has announced a 25% tariff on imported cars and light trucks starting on Thursday. Manufacturers are expected to bear some of the tariff costs in the first year, but will eventually alter production and possibly cease importing certain low-volume models into the U.S. market.

“Given the (lower) proportion of South Korean automakers’ local production in the United States, our industry is comparably at a disadvantage,” the government said in a statement.

The tariff was expected to cause “significant” damage to South Korean automakers and auto parts manufacturers, though it was difficult to come up with numerical estimates at the moment, the government said.

To help prevent any liquidity issues, the government will raise policy financing support for the auto industry to 15 trillion won ($10.18 billion) in 2025 from the 13 trillion won previously planned, according to the statement.

-Reuters