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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Hyundai Motor Group has reportedly donated $1 million (approximately 14.7 billion KRW) to the inauguration fund of U.S. President-elect Donald Trump. This donation is equal to those made by other major automakers such as General Motors (GM), Ford, and Toyota.
According to the Wall Street Journal (WSJ) on Saturday, citing sources, "Officials from Hyundai Motor, South Korea's largest car manufacturer, have been in contact with President-elect Trump's associates since the U.S. presidential election, and they hope to have a private meeting with him." Additionally, Hyundai is said to have contributed $1 million to the inauguration fund through its North American subsidiary. This is reportedly Hyundai's first donation to a U.S. presidential inauguration.
WSJ also reported that GM, Ford, and Toyota each donated $1 million to Trump's inauguration fund. Other figures, including Amazon founder Jeff Bezos, Apple CEO Tim Cook, OpenAI CEO Sam Altman, and Meta CEO Mark Zuckerberg, also pledged $1 million each.
WSJ analyzed that "the fear of tariff pressures from President-elect Trump is growing among the world's largest automakers," and that these companies are working to strengthen their relationships with Trump and his senior advisors.
Earlier, Reuters reported that the Trump administration is considering scrapping the current U.S. Inflation Reduction Act (IRA), which provides up to $7,500 in subsidies for electric vehicles, to push a proposal that would benefit U.S.-produced batteries and electric vehicles.
Moreover, if Trump follows through with the proposed 10-20% universal tariffs, Hyundai is expected to face a direct hit to its export performance. The Korea Institute for Industrial Economics and Trade (KIET) predicts that the universal tariffs could lead to a 2.7% reduction in South Korea's automotive exports and a 6.7% decrease in secondary battery exports to the U.S.
Trump has been particularly focused on China, Mexico, and Canada, threatening to impose up to 20% tariffs on goods from these countries unless they take action to prevent the influx of drugs and immigrants into the U.S.
According to Wards Intelligence, about 16% of vehicles sold in the U.S. last year were produced in Mexico, and 7% were imported from Canada. Research firm Wolfe Research estimates that Mexico and Canada export about $100 billion worth of automotive parts to the U.S. each year. If tariffs are imposed, it is estimated that the average price of a vehicle sold in the U.S. could rise by around $3,000.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
