Hyundai and Kia's Strategy to Avoid Trump's Auto Tariff
Hyundai Motor Company and Kia plan to increase American automobile production by 70% to avoid President Trump's proposed 25% auto tariff. South Korea's auto exports could drop to 18.6% if the tariff is imposed. Nissan CEO also considers moving automobile production out of Mexico due to potential tariffs.
Key Points
- Hyundai and Kia plan to increase American automobile production by 70%
- South Korea's auto exports could drop to 18.6% with the proposed 25% tariff
- Nissan CEO considers relocating production out of Mexico due to potential tariffs
Pros
- Boosting domestic production creates jobs in the U.S.
- Helps avoid potential negative impact of Trump's proposed auto tariff
- Increases self-sufficiency and reduces reliance on imports
Cons
- May require significant investment to ramp up production
- Could lead to complexities in supply chain management