GM and Hyundai increase South Korean imports as Trump tariffs | Real Time Headlines

Detroit – President Donald Trump Threat to be further Increase tariffs on U.S. trading partnersthe biggest impact on the automotive industry outside North America will be the additional taxes from South Korea and Japan.

According to data provided to CNBC by GlobalData, vehicles sold in East Asian countries accounted for 16.8% of last year’s sales, including 8.6% in South Korea and 8.2% in Japan.

They are the largest U.S. vehicle importer outside Mexico – they have little responsibility compared to Trump’s 25% tariff Imposed on Canada and Mexico.

Automobile manufacturers, e.g. General Motors and South Korea Modern electric motors There is no customs duty on exporting vehicles from South Korea. Last year, the country replaced Japan and Canada, according to sales, becoming the second largest exporter of new cars in the United States.

GlobalData reported that it lags only behind Mexico, which accounts for 16.2% of U.S. car sales in 2024.

“Obviously, Hyundai has a lot of exposure. Its volume is GM … with a relatively large volume model,” said Jeff Schuster, vice president of global automotive research at GlobalData. “There are potentially a lot of risks here, but that’s for both There are limited players, and indeed limited.”

Currently, automakers imported from Japan (e.g. Toyota Motors,,,,, Nissan Engine and Honda Motor. Vehicles from Japan sold about 1.31 million cars in the United States last year

In recent years, Japan’s sales ratio has actually declined, while South Korea’s exports and sales have continued to rise from 845,000 in 2019 to more than 1.37 million in 2024.

South Korea still has 0% tariffs on cars, despite Trump renegotiating a trade deal with the country during his first term in 2018. The agreement was touted for improving imports of vehicles imported to South Korea, but this is not much to do in addressing U.S. vehicle exports.

according to International Trade Commission. U.S. passenger car exports to South Korea have actually dropped by about 16%.

Separate from cars, trucks exported from South Korea and Japan to the United States and elsewhere are both 25%.

Tariffs are taxes on imported or foreign goods entering the United States. Companies that import goods pay tariffs, and some experts worry that these companies will only transfer any additional fees to consumers – increasing the cost of the vehicle and potentially reducing demand.

General Motors is the largest foreign direct investor in South Korea’s manufacturing industry Automaker’s website. Since its establishment in 2002, it has invested 9 trillion yuan in South Korea’s winnings (about $6.2 billion).

General Motors produces it Buick Encore GX and Buick Envista The crossover of Korean plants and the Chevrolet Trail Blazers and Chevrolet Trax crossovers. The company touts vehicles as the pinnacle of automakers’ profitability among low-profit, entry-level vehicles.

“We are taking out the cost of the plan, increasing profitability and creating vehicles that customers like, such as the new Chevy Trax and Buick Envista,” GM president Mark Reuss said during the company. Investor Day in October. “Trax and Envista helped increase our share of the U.S. small SUV market to its highest level since 2007.”

When asked about potential tariffs in South Korea, GM and Hyundai did not respond immediately. Kia declined to comment.

Terence Lau, Dean of the Syracuse University School of Law, has served as a trade expert before Ford electric motorThe automotive industry is based on free trade. If tariffs are imposed, the industry can make adjustments, but it takes time.

“The automotive industry can adapt to anything. It does. It will always be the product that customers want to buy because personal mobility and transportation are human needs around the world,” he said. “What the automotive industry can’t do well is a corner. money.”

Law believes that tariffs on unit numbers may be “nuisance”, but once it reaches 10% or more, the additional expenses can really start to consume profits or products.

Ford electric motor CEO Jim Farley last week believed that if Trump intends to impose tariffs that affect the automotive industry, Take a “full” look In all countries, even North America sports fields.

Farley imported hundreds of thousands of vehicles from Japan and South Korea, respectively, and picked out Toyota and Hyundai.

“Millions of vehicles are entering our country (not applicable to tariffs),” Farley said on the company’s fourth-quarter earnings call with investors. “So if we’re going to put in a tariff policy… it’s better to Our industry is comprehensive and comprehensive.

“We can’t just pick one place or another because it’s a liar for our import competitors.”

The White House did not respond to comments on potential South Korea’s tariffs.

trump card Set up Oval Office Press Conference to discuss his plans Reciprocal tariffs In other countries at 1 p.m. Thursday, it is not clear whether South Korea and Japan will be included.

Mike Johnson, Republican Speaker of the U.S. House Tell Reuters On Wednesday, he believes Trump is considering exemptions, including the automotive and pharmaceutical industries.