As Trump Ups, GM and Hyundai tariffs increase southern Korea imports

Detroit – as president Donald Trump Threat with more Increase tariffs on US business partners.The greatest impact for the automotive industry outside North America would be additional taxes in South Korea and Japan.

The East Asia countries produced 16.8% combined of vehicles sold last year in the United States, including a record of 8.6% of South Korea and 8.2% of Japan, according to the data provided to CNBC by Globaldata.

They were the important of larger vehicles for the United States outside of Mexico, and have few or no fee compared to the 25% rate that Trump has threatened Imposing to Canada and Mexico.

Car manufacturers such as General Motors and based in South Korea Hyundai engine Export vehicles without rates from South Korea. The country beat Japan and Canada last year to become the second largest exporter of new cars to the United States, according to sales.

It follows only Mexico, which represented 16.2% of US car sales in 2024, reports Globaldata.

“Obviously, Hyundai has a lot of exposure. Behind is GM … with relatively large models,” said Jeff Schuster, global vice president of automotive research in Globaldata. “There is a lot of risk potentially here, but it is really limited, to those two players.”

Imports from Japan are currently attached to a 2.5% rate for car manufacturers such as Toyota motor, Nissan motor and Honda engine. Japan vehicles represented around 1.31 million cars sold last year in the United States.

The percentage of sales of Japan has actually decreased in recent years, while the exports and sales of South Korea have continued to increase from less than 845,000 in 2019 to more than 1.37 million in 2024.

South Korea has 0% tariffs on cars even though Trump renegotiate address vehicle exports to the United States.

The agreement has also done little to increase automotive exports to South Korea, according to data from The International Trade Commission. Exports of US passenger vehicles have actually decreased by approximately 16%.

They separate cars, tariffs on trucks exported from South Korea and Japan to the United States, as well as in other places, are 25%.

A tariff is an import tax, or foreign goods, brought to the United States. Companies that import goods pay tariffs, and some experts fear that companies simply pass additional costs to consumers, which increases the cost of vehicles and potentially reduces demand.

GM is the largest direct foreign investor in the manufacturing industry of Korea, according to The website of the automobile manufacturer. He has invested 9 billion South Korean Wones (approximately $ 6.2 billion) since he established operations in 2002.

GM produces its BUICK ALCORE GX AND BUICK Envista The crossovers, as well as the Chevrolet Trailblazer and the Chevrolet Trax crossovers, in the South Korean plants. The company has promoted vehicles as a pinnacle for the profitable growth of the car manufacturer in lower entry level vehicles.

“We are taking cost costs, improving profitability and creating vehicles that customers love, such as the new Chevy Trax and the Buick Envista,” said GM president Mark Reuss, during the company. Investor Day in October. “Trax and Envista have helped increase our participation in the small SUV market in the USA. UU. At its highest level since 2007”.

Hyundai did not respond immediately when asked about possible tariffs in South Korea. GM and Kia declined to comment.

Terence Lau, dean of the Law Faculty of the University of Syracuse who previously worked as a trade expert for Ford motorHe said the automotive industry is based on free trade. If tariffs are implemented, the industry can adjust, but it takes time.

“The automotive industry can adapt to anything. Really, you can always make customers want to buy, because personal mobility and transport are a human need worldwide,” he said. “What the automotive industry cannot do well is a pivot in a penny.”

Lau argued that a single -digit rate can be a “discomfort”, but once they reach 10% or more, it is when additional costs can really start eating the margin or products.

Ford motor CEO Jim Farley last week argued that if Trump will implement tariffs that affect the automotive industry, he should Give an “integral” appearance In all countries even for the playing field in North America.

Farley highlighted Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.

“There are millions of vehicles that enter our country that are not being applied to these (incremental tariffs),” Farley said during the company’s quarter -quarter profit call with investors. “So, if we are going to have a rate policy … it is better to be integral for our industry.

“We cannot simply select one place or another because this is a bonanza for our import competitors.”

The White House did not respond to comment on possible tariffs on South Korea.

Trump on Thursday signed a presidential memorandum Present your plan to impose “reciprocal tariffs” on foreign nations, but did not come into details about what countries could be attacked.

As a presidential candidate, Trump raised the possibility of imposing tariffs on the entire board on all imports from the United States. But he also advocated Congress to approve what he called “Trump’s reciprocal trade law,“What would train him to slapped tariffs on the goods of any country that has higher rates on the goods made in the United States.

– CNBC’s Kevin Breuninger contributed to this report.