From Yahoo Finance: 2025-03-27 10:31:00

President Trump’s 25% tariff on imported cars and light trucks, set to take effect on April 3, has caused shares in companies like Toyota, Honda, Hyundai, and Kia to plummet, wiping out $16.5 billion in value. The car industry is a crucial economic pillar and source of pride for Japan and South Korea, impacting millions of jobs. In Japan, automakers like Toyota set wage precedents and employ over 5 million people, while in South Korea, cars and auto parts make up 14% of exports, with half going to the U.S. The tariffs are causing concern among workers in “motor city” Gwangju, South Korea, which exports Kia vehicles to the U.S., and GM factories in South Korea that export over 80% of vehicles produced. South Korea’s industry minister is promising measures to minimize the impact, while Japan is exploring all options and highlighting its status as a top foreign investor in the U.S. Mexico, a key part of most global automakers’ supply chains, is also affected by the tariffs, potentially impacting jobs and the economy. The tariffs are causing worries among workers, recent graduates, and job seekers in both Japan and South Korea, who fear for their future prospects and job security. The impact of the tariffs is felt not only in the automotive industry but also in broader economic and social aspects of both countries.



Read more at Yahoo Finance: Analysis-Trump auto tariffs take aim at a pillar of Asian economies