Tariff Tsunami Auto Industry Annihilation






Auto-tariff chaos, Tesla hit, Hyundai-Kia profits plunge.

Tariff Bomb? Analysis of Global Automotive Industry’s Shock and Response, Hyundai/Kia & Tesla

President Trump’s Tariff Declaration and Its Immediate Impact

A 25% tariff imposition announcement was made for the automotive manufacturing industry.
Immediately after this announcement, major domestic manufacturers such as Hyundai and Kia are likely to suffer significant blows.
In particular, it is predicted that Hyundai and Kia’s total operating profit could decrease by up to 40%.
The Trump administration’s hardline tariff policy has a serious impact on the global economic outlook.
This increases uncertainty throughout the automotive industry.

Hyundai/Kia’s Investment in the U.S. and the Two Sides of Tariffs

Hyundai announced plans to expand Meta Plant America in Georgia.
Although it expected to avoid tariffs by increasing production in the United States, the tariff burden remains.
Production of the IONIQ 5 and plans to expand production of the IONIQ 9 are underway.
Plans to expand the proportion of hybrid vehicle production have also been announced.
Despite these moves, there is a concern that the tariff burden will negatively affect profitability.

Tesla and Global Manufacturers’ Tariff Risks

Tesla also has a large proportion of production in the United States, but a significant portion of its parts are sourced from abroad.
Tesla is also not entirely free from the impact of the 25% tariff due to the Trump administration’s tariff policy.
Elon Musk warned that the cost burden is not a trivial matter.
Tesla is seeking to expand its global production bases, including entering India, as well as the United States.
As such, tariff policies may act as a burden on Tesla’s various business expansion plans.

Dealers and Manufacturers’ On-Site Response Strategies

Dealers are expressing concern about rising new car prices due to tariff increases.
European manufacturers such as BMW are attempting to maintain market share through price adjustments.
Some dealers predict that demand for used cars will increase due to tariff increases.
Manufacturers are trying to avoid the situation by expanding production capacity and readjusting the proportion of production in the United States.
The response strategies of dealers and manufacturers are important keywords that will determine future market volatility.

Global Economic Outlook and Investment Outlook

The automotive markets in the United States, Europe, Asia, and other countries around the world are preparing for the aftermath of tariff increases.
In particular, finding a balance between restructuring the global supply chain for parts procurement and increasing production in the United States is key.
Investors are seeking mid- to long-term investment opportunities along with short-term stock price declines.
Structural changes brought about by tariff policies and the response strategies of each country’s government act as important variables in investment decisions.
Domestic and foreign investors should pay close attention to the global economic outlook and related policy changes.

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President Trump’s 25% tariff policy on the automotive industry has caused a major impact on the global economy.
Despite making large-scale investments in the United States, Hyundai and Kia are predicted to have a potential 40% drop in operating profit.
Although Tesla has a high proportion of U.S.-made parts, it is not free from the tariff burden, and there are concerns about price increases and setbacks in its entry into India.
Dealers and manufacturers are devising their own response strategies and are seeking to overcome the crisis by expanding production and adjusting prices.
It is necessary to closely observe the impact of these tariff bombs on the global economic outlook and investment environment.

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 ● Auto-tariff chaos, Tesla hit, Hyundai-Kia profits plunge. Tariff Bomb? Analysis of Global Automotive Industry’s Shock and Response, Hyundai/Kia & Tesla President Trump’s Tariff Declaration and Its Immediate Impact A 25% tariff imposition announcement was made for the automotive manufacturing industry. Immediately after this announcement, major domestic manufacturers such as Hyundai and Kia are…

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