Trump tariff cut on Japanese cars poses threat to Hyundai Motor, Kia

U.S. President Donald Trump’s latest move to lower a tariff on Japanese auto imports is feared to weaken the price competitiveness of Hyundai Motor Group, which still faces a higher tariff burden in the world’s largest economy. According to the White House Thursday (local time), Trump signed an executive order to cut its tariff on imports of Japanese cars to 15 percent from the previous 27.5 percent. The tariff reduction will take effect seven days after publication of the order. The order leaves Hyundai Motor, Kia and Genesis at a disadvantage in the U.S., as they remain subject to a 25 percent tariff more than a month after the U.S. agreed to lower the levy on Korean car imports to the same level as Japan. Korean carmakers are in dire need of receiving the same the same tariff rate so they can minimize the earnings shock and further increase their market share in the U.S. through price competitiveness. According to data from the Korean carmakers, Hyundai Motor’s export reliance on the U.S. reached 54 percent last year, with that of Kia coming in at 38 percent during the same periWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times