The government will inject additional liquidity of two trillion won, roughly 1.35 billion U.S. dollars, into the local auto industry as it struggles to cope with a 25 percent tariff on car imports to the United States.

The government announced a set of measures to that effect Wednesday after an emergency meeting of economy-related ministers. 

The addition will increase the government’s policy financing to South Korean auto and auto parts industries to 15 trillion won.

An additional one trillion won will be injected in the form of loans and guarantees, with contributions from the country’s largest automaker, Hyundai Motor Group, and major banks.

Separately, the government will provide 250 billion won in emergency management stabilization funds to help small and midsize firms affected by the tariffs.

The government will also increase subsidies for the purchase of electric vehicles to boost domestic consumption, and will designate autonomous driving technology as one of the nation’s strategic technologies to provide incentives for research and development projects and facility investments.