The Hinrich Foundation Trade Podcast
Hinrich Foundation is a unique Asia-based philanthropic organization that works to advance mutually beneficial and sustainable global trade.
We believe sustainable global trade strengthens relationships between nations and improves people’s lives. We support original research and education programs that build understanding and leadership in global trade. Our approach is independent, fact-based and objective.
The Hinrich Foundation Trade Podcast
Special Ep. - How Trump's tariffs impact automakers around the world
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In this edition of the Hinrich Foundation’s podcast on global trade, Yuka Hayashi, Vice President of The Asia Group, sits down with former Wall Street Journal senior editor Paul Beckett to unpack the effects of the Trump administration’s tariffs on automakers around the world amid heightened global trade tensions.
The impact of President Trump’s auto tariffs has been uneven, with Japan, South Korea, and Germany most affected due to heavy reliance on US auto exports. Company exposure varies widely — Mitsubishi Motors faces full tariffs due to total imports for US sales, while Tesla and Ford are less affected due to complete domestic production.
Despite the US-Mexico-Canada Agreement, Trump imposed steep tariffs on Canadian and Mexican imports, citing national security under Section 232. Automakers have partly absorbed costs, but consumer prices are rising. The competition for auto production is fuelling political and economic strains globally.
Tune into this podcast as Yuka Hayashi, Vice President of The Asia Group, joins former Wall Street Journal senior editor Paul Beckett, in an interview hosted by the Association of Foreign Press Correspondents-USA and supported by the Hinrich Foundation, to break down how Trump’s auto tariffs are reshaping global supply chains as key automakers are hit and trade relations become strained. The podcast follows up on The Asia Group’s recent paper for the Hinrich Foundation, “Tariffs hit some automakers more than others.”
Tune into the Hinrich Foundation’s podcast series for insights on international trade.
HERE IS AN EXCERPT FROM THEIR CONVERSATION:
Paul Beckett: Which countries have been the most affected? President Trump’s been on a tariff binge of late, so who got hit the hardest for autos?
Yuka Hayashi: So, we haven't really quantified exactly the size of impact, but I would say Japan, South Korea, and Germany are the countries that are hit the most.
Paul Beckett: They're obviously huge. Automakers are all brands. They all have brands that we know and see on the streets every day. But I guess the point is – these are big industries in those countries, right? Is that why they care so much about what Trump is doing on tariffs, on automobiles?
Yuka Hayashi: Exactly. That’s exactly right, Paul. So, for Japan and South Korea, auto exports – exports of autos and auto parts to the United States – account for about one third of their overall exports to the United States. And for Germany, the figure is about 20%. And if you just look at Japan, the auto industry is just a very, very important part of the economy. So, the auto industry employs about 5.5 million people in Japan. The industry represents about 2.5% of the country's GDP. By a broader measure, the auto industry could be as high as 10% of the GDP, if you look at the kind of trickle down effects of the industry. So, it is just a very important part of Japan's economy. The numbers are pretty similar in South Korea as well. The leaders of Japan and Korea have been very vocal in opposing the tariffs, and they have tried hard, very hard to try to first completely reverse the tariffs. But then at some point they started focusing on reducing the level of tariffs.