Korean carmakers all over the world are doing pretty good, and big names like Hyundai, Kia, and General Motors Korea are the main firms that have built a reputation for the nation’s automotive industry. GM Korea has always been a huge car supplier in the U.S. and depends highly on the U.S. for much of its revenues as General Motors ‘ parent company is a major business in the U.S.
The U.S. president, Mr Donald Trump, has proposed placing certain restrictions on vehicles shipped into the country from other automotive markets, and the most significant in this tariff category is the European car sector, which has the most exports to the U.S. It is also predicted that Korea will be on this list, which will place a tariff of 25% on nation-wide exports into the US. Hyundai and Kia basic engines Asia, which makes the large percentage of their cars locally in South Korea and then sells them to the U.s and the world in general, will also watch the circumstance with purpose and expect the judgment of Trump, because if tariffs are implemented they may have to reconsider their entire outlook and profits.
Thus uncertainty about this decision has the Korean car manufacturers going to play very safely in production as there are rumours that the manufacturing has been reduced until the decision is made to reduce the casualties if the customs duties are applied.