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

Detroit – As President Donald Trump threatens to further increase tariffs on US commercial partners, the greatest impact for the outside of 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 importers 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 to impose in 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.

Hyundai, based in South Korea, is the largest vehicle exporter to the United States, followed by GM and then Kia Corp., a part of Hyundai that operates largely separately in the United States.

GM has significantly increased its imports from South Korea in recent years. Its US sales of vehicles produced by South Korea, largely entry level models, have increased from 173,000 in 2019 to more than 407,000 last year, according to Globaldata.

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

GM produces its crossovers Buick Enore GX and Buick Envista, as well as the Chevrolet Trailblazer and Chevrolet Trax Crossovers, in South Korea 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's investors 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”.

GM and Kia declined to comment when asked about possible tariffs in South Korea. Hyundai promoted its operations and investments in the United States, which according to the automobile manufacturer totaled $ 20.5 billion since he entered the market in 1986, but did not comment directly on possible tariffs.

“For almost four decades, Hyundai has been a promoter of American growth and innovation, contributory jobs, economic activity and investments that have helped Americans prosper. We appreciate the opportunity to work with the new administration to support US manufacturing , protect supply chains, and stimulating innovation, “Hyundai said Thursday in a statement sent by email.

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 The CEO Jim Farley, last week, argued that if Trump will implement tariffs that affect the automotive industry, he should have a “integral” look at all countries for even 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 come to our country that are not applying to these [incremental tariffs]”Farley said during the company's fourth -quarter profit call with investors.” So, if we are going to have a tariff 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 signed on Thursday a presidential memorandum that established his plan to impose “reciprocal tariffs” to foreign nations, but did not come into details about which 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 advoc that Congress approved what he called the “Trump Reciprocal Commerce Law”, which would train him to slap Joined.

– CNBC's Kevin Breuninger contributed to this report.