| | | Today our Executive Chair met with President Trump at The White House and announced new U.S. investments of $21 billion over the next four years! This includes a new Hyundai Steel plant in Louisiana and $9 billion in automotive investment
In spite of Hyundai Motor Group having been upping its investments in US factories since 2019 and the first Trump administration, they may have also decided to cover their bases by supporting a SK/China/Japan trade alliance.
From Asia Financial, yesterday.
Trump announced 25% import tariffs on cars and auto parts last week, a move that may hurt companies, especially Asian automakers, which are among the largest vehicle exporters to the US. Japanese auto exports total about $40 billion and represent over a quart of the country’s exports to the US.
While Toyota and some other big carmakers look likely to set up car plants in the US, overall production could plunge by 4% at home, by some estimates.
South Korea is the second largest exporter of vehicles to the United States, behind Mexico, and its auto exports to the US total close to $35 billion, nearly half of its total US exports.
Japan, meanwhile, is the third largest exporter of vehicles to the US, according to data from S&P, Reuters said.
Both countries have been forced to rethink and rejig their trade dealings because of US President Donald Trump’s zealous imposition of tariffs and apparent lack of empathy.
He told NBC News last week he “couldn’t care less” if tariffs cause car prices to go up, and has reportedly set his eyes on targeting chips next.
US now seen as unpredictable, unreliable
Motives bigger and potentially more serious than economic factors appear to be warming the frosty ties in North Asia.
All three countries have been shaken by the new US leadership, which appears to be extremely unpredictable, for foes and allies alike, and potentially far more unreliable than the tight ties they had with the Biden Administration.
Investors are unimpressed and have been ditching US shares in a rush to gold and other “safe havens”.
Japan’s political elite is allegedly divided, fearing Trump’s policies will create even deeper economic and social problems in America, according to a commentary by Asia Sentinel.
And analysts say it’s hardly surprising that South Korea and Japan are looking in other directions, to seek economic alternatives to the US.
China appears to be hoping for a trade deal with Trump, but closer trade ties with Tokyo and Seoul may offer a safety net if President Xi cannot achieve that.
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