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Hyundai Motor Company Headquarters in Yangjae-dong, Gangnam-gu, Seoul. (Photo = Yonhap News) |
[Alpha Biz= Kim Jisun] Hyundai Motor and Kia sold 1.77 million vehicles in the United States last year (based on wholesale figures). Of these, 630,000 units were produced in the U.S., while 140,000 were manufactured in Mexico.
If U.S. President Donald Trump proceeds with the announced 25% tariff on automobiles starting April 2 (local time), it will deal a heavy blow to the 1 million vehicles exported annually from South Korea to the U.S. When combined with exports from Mexico, approximately 65% of total U.S.-bound exports will be subject to the additional tariff, severely undermining price competitiveness.
Korea’s GM, which exports over 90% of its production volume to the U.S., faces a potential existential crisis. Panic is spreading among South Korea’s auto industry workforce, which includes 100,000 employees at Hyundai and Kia and a total of 340,000 workers when accounting for GM Korea, other automakers, and suppliers.
The South Korean financial sector estimates that the damage from U.S. auto tariffs could exceed 10 trillion won.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
