As Trump ups tariffs, GM and Hyundai increase South Korean imports

DETROIT – As President Donald Trump threatens to further increase the prices on American trade partners, the greatest impact for the automotive industry outside North America would be additional samples from South Korea and Japan .

The Eastern Asian countries produced 16.8% of vehicles sold last year in the United States, including an 8.6% record in South Korea and 8.2% of Japan, according to the data provided to CNBC by GlobalData.

They were the largest vehicle importers in the United States outside of Mexico – and they have little or no tasks compared to the 25% price that Trump threatened to impose in Canada and Mexico.

Car manufacturers such as General Motors and based in South Korea Hyundai engine Export vehicles without a price from South Korea. The country exceeded Japan and Canada last year to become the second largest exporter of new cars in the United States, based on sales.

It only followed Mexico, which represented 16.2% of American automobile sales in 2024, reports Globaldata.

“Obviously, Hyundai has a massive exhibition. Behind her is GM … with relatively important models of volumes,” said Jeff Schuster, a global vice-president of Automobile Research in Globaldata. “There is a lot of risks potentially here, but it is limited, really limited, to these two players.”

Imports from Japan are currently subject to a rate of 2.5% for car manufacturers such as Toyota Motor,, Nissan engine And Honda Motor. Japan vehicles represented around 1.31 million cars sold last year in the United States

The percentage of Japanese sales has in fact decreased in recent years, while exports and sales of South Korea have continued to drop from less than 845,000 in 2019 to more than 1.37 million in 2024.

South Korea has 0% prices on cars despite that Trump has renegotiated a trade agreement with the country during its first mandate in 2018.

The agreement also made much to increase car exports to South Korea, according to data from The International Commerce Committee. Exports of American passenger vehicles to South Korea actually decreased by around 16%.

Separated from cars, prices on exported trucks from South Korea and Japan to the United States, as well as elsewhere, are 25%.

A price is a tax on imports or foreign goods brought to the United States. Companies that import goods pay prices, and some experts fear that companies simply have additional costs to consumers – increase the cost of vehicles and potentially reduce demand.

Hyundai, based in South Korea, is the largest exporter of vehicles in the United States, followed by GM then Kia Corp., part of Hyundai which operates largely separately in the United States

GM has notably increased its imports from South Korea in recent years. According to GlobalData, its American sales of South Korean products products – largely entry -level models – went 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 in Korea, according to The car manufacturer’s website. He invested 9 billions of South Korean Won (approximately $ 6.2 billion) since operating it in 2002.

GM produces its Buick Crossovers still GX and Buick envisaged, as well as the Chevrolet Trailblazer and Chevrolet Trax Crossovers, in factories from South Korea. The company presented vehicles as a summond for the profitable growth of the automaker in entry -level vehicles at the lower margin.

“We delete the costs of the programs, improve profitability and create vehicles that customers love, like the new Chevy Trax and the Buick envisa,” said President of the Managing Director Mark Reuss during the company’s investor day in October. “Trax and planted have helped to increase our share of the small US SUV market to its highest level since 2007.”

GM and Kia refused to comment when they asked them for potential prices on South Korea. Hyundai has praised its operations and investments in the United States, which, according to the manufacturer, has totaled $ 20.5 billion since entering the market in 1986, but has not directly commented on potential rates.

“For almost four decades, Hyundai has been an engine of American growth and innovation, contributing jobs, economic activity and investments that have helped Americans prosper. We welcome the occasion to work With the new administration to support American manufacturing, protect the supply chains, and stimulate innovation, “Hyundai said in a statement sent by email on Thursday.

Terence Lau, dean of the College of Law of the University of Syracuse who previously worked as a commercial expert for Ford enginesaid the automotive industry is built on free trade. If prices are implemented, industry can adapt, but it takes time.

“The automotive industry can adapt to everything.” What the automotive industry cannot do well is to rotate on a penny. “

Lau argued that a figure price can be a “nuisance”, but once they have reached 10% or more, this is when additional costs can really start to eat in the margin or products.

Ford engine CEO Jim Farley last week argued that if Trump was going to implement prices affecting the automotive industry, he should take a “complete” overview of all countries to the rules of the game in North America.

Farley distinguished Toyota and Hyundai for importing hundreds of thousands of vehicles a year from Japan and South Korea, respectively.

“There are millions of vehicles that enter our country that are not applied to these [incremental tariffs]”Farley said during the company’s fourth benefits of the company with investors.” So, if we want to have a price policy … It is better to be complete for our industry.

“We cannot just choose one place or another because it is a boon for our import competitors.”

The White House did not respond to comment on the potential prices on South Korea.

Trump signed a presidential memorandum setting out his plan to impose “reciprocal prices” on foreign nations on Thursday, but did not enter into detail concerning targeted countries.

As a presidential candidate, Trump has launched the possibility of imposing increasing prices on all American imports. But he also recommended that Congress passes what he called “Trump reciprocal act of trade,“This would allow him to slap prices on goods from any country that has higher prices on American manufacturing goods.

– CNBC Kevin Breuninger contributed to this report.