Economy, Auto
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Trump Tariff Plan Threatens GM Korea Rescue

Trump Tariff Plan Threatens GM Korea RescueTrump Tariff Plan Threatens GM Korea Rescue

Fresh off a $7 billion rescue for its loss-making South Korean operation, General Motors faces a new threat as US President Donald Trump considers higher vehicle import tariffs that could “make or break” its Asian subsidiary. Earlier this month GM agreed on the bailout package with the South Korean government in return for a pledge to stay in the country for at least 10 years, purchase more Korean-made parts and produce two new models popular in the US market, Reuters reported. But less than two weeks later, the Trump administration launched a national security investigation into car and component imports that could lead to new US tariffs similar to those imposed on imported steel and aluminum in March. Higher tariffs would be painful for Asian automakers whose shipments accounted for one third of US vehicle imports last year through heavyweights such as Toyota Corp and Hyundai Motor. They could also have a devastating impact on smaller players such as GM Korea and its plan to become a major export hub again.

 

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