Trump's Tariffs Shake Japan and South Korea's Prideful Auto Industries

U.S. President Trump's 25% tariffs on imported cars impact Japan and South Korea, threatening their crucial auto industries. The tariffs may affect production, exports, and employment, shaking economic stability in both countries, which heavily depend on the auto sector for GDP and jobs.

In a major blow to the automotive sectors of Japan and South Korea, U.S. President Donald Trump announced a 25% tariff on imported cars and light trucks. This move has already led to a collective devaluation of around $16.5 billion in shares for giants like Toyota, Honda, Hyundai Motor, and Kia Corp.

The automotive industry, a cornerstone of the post-war economic resurgence in Japan and South Korea, is facing a considerable threat. Industry veterans are worried that these tariffs might drastically impact production volumes and employment prospects, as evidenced by concerns from Gwangju's automotive workers and businesses in Tokyo.

Government and industry leaders are assessing the situation, with Japan and South Korea vowing to explore options to counteract this challenge. Both countries are prominent vehicle exporters to the U.S., and the tariffs promise to affect significant supply chains, particularly those linked to Mexico.

(With inputs from agencies.)