As Trump, GM and Hyundai tariffs, they increase the import of South Korea

Detroit – as a president Donald Trump threatens further Increase the tariffs on American trading partnersThe greatest influence for the automotive industry outside North America would be additional fees for South Korea and Japan.

Eastern Asia countries produced a total of 16.8% of vehicles sold last year in the USA, including a record of 8.6% from South Korea and 8.2% from Japan, according to the data provided by CNBC by Globaldata.

They were the largest importers of vehicles to the USA outside Mexico – and have small or no obligations compared to the 25% tariff that Trump threatened Imposing Canada and Mexico.

Car manufacturers, such as General Motors and South Korea Hyundai Motor Export vehicles without a tariff from South Korea. Last year, the country was ahead of Japan and Canada to become the second largest exporter of new cars to the USA, based on sales.

Globaldata only informs Mexico, which accounts for 16.2% of the sales of cars in the US in 2024.

“Of course, Hyundai has a huge exhibition. Behind him is GM … with relatively large volume models, “said Jeff Schuster, a global vice president of automotive research at Globaldata. “There is a high risk here, but it is limited, really limited to these two players.”

Imports from Japan are currently subject to a 2.5% tariff for car manufacturers, such as Toyota MotorIN Nissan engine AND Honda Motor. Vehicles from Japan represented about 1.31 million cars sold last year in the USA

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

South Korea has 0% tariffs for cars, despite the fact that Trump renegotiates a trade agreement with the country during its first term in 2018. Accord was advertised to improve the import of vehicles to South Korea, but there was little to export the vehicle to the USA

The contract did little to increase automotive exports to South Korea, in accordance with the data with International Trade Commission. The export of a passenger vehicle in the USA to South Korea actually dropped by about 16%.

Separately from cars, tariffs for trucks exported from South Korea and Japan to the USA, as well as elsewhere, they amount to 25%.

The tariff is a tax on imports or foreign goods brought to the United States. Companies importing goods pay tariffs, and some experts are afraid that companies will simply transfer to consumers all additional costs – increasing vehicle costs and potentially reducing demand.

According to GM, it is the largest foreign direct investor in the production industry in Korea Manufacturer's manufacturer's website. Since the establishment of the operation in 2002, he has invested 9 trillions of South Korea won (about $ 6.2 billion).

GM produces Buick Encore GX and Buick Envista Crossovers, as well as Crossovers Chevrolet Trailblazer and Chevrolet Trax, in plants in South Korea. The company advertised vehicles as the peak of the manufacturer's income growth in basic vehicles of lower margins.

“We pull out the costs of programs, improving profitability and creating vehicles that customers love, such as the new Chevy Trax and Buick Envista,” said GM Mark Reuss president during the company during the company Investor's day in October. “Trax and Envist have helped to raise our participation in the American SUV market to the highest level since 2007.”

Hyundai did not answer immediately when the potential tariffs for South Korea were asked. GM and Kia refused to comment.

Terenca Lau, dean of College of Law at the Syracuse University, who previously worked as a sales expert for Ford engineHe said that the automotive industry was based on free trade. If tariffs are implemented, the industry can adapt, but it takes time.

“The car industry can adapt to everything. Maybe. It will always create a product that customers want to buy, because personal mobility and transport are human need all over the world, “he said. “What the car industry cannot cope well is a turn of decades.”

Lau argued that one digital tariff can be a “nuisance”, but when they reach 10% or more, then additional costs can really start eating in the margins or products.

Ford engine CEO Jim Farley last week argued that if Trump intends to implement tariffs affecting the automotive industry, it should Look for a “comprehensive” look In all countries, even to play in North America.

Farley was distinguished by Toyota and Hyundai for importing hundreds of thousands of vehicles from Japan and South Korea respectively.

“Millions of vehicles appear to our country that are not used (incremental tariffs),” said Farley when merging with earnings in the fourth quarter of the company with investors. “So if we have a tariff policy … it will be better to complex for our industry.

“We can't just collect one or another because it is Bonanza for our import competitors.”

The White House did not respond to a comment on potential tariffs in South Korea.

Trump on Thursday signed the presidential memorandum Placing your plan to impose “mutual tariffs” on foreign nations, but did not provide detailed information on what countries can be targeted.

As a candidate for president, Trump raised the possibility of applying tariffs on board on all US imports. But he also told that Congress could pass what he called “Trump Mutual Trade Act,“This would allow him to hit the tariffs on goods of any country, which have higher tariffs for goods made by the USA.

– CNBC's Kevin Breuninger He contributed to this report.