President Trump has followed through on his threat to slap tariffs on imported cars, starting next week. Across the Pacific, that news landed with a thump.
Autos and autoparts make up more than a third of all exports from Japan to the United States — the single biggest category of goods.
How much damage the U.S. tariffs will bring to Japan's economy is a matter of debate. Goldman Sachs says it will knock about 0.1% off Japan's annual economic growth.
Nomura Research Institute doubles that estimate — saying it will push GDP down by 0.2%.
Prime Minister Shigeru Ishiba said Japan would put “all options on the table” as a response, though it's not clear what those options may involve.
In South Korea, automakers Hyundai and Kia together sell nearly 2 million cars a year in the U.S. — about two-thirds of them are made in Korea. Ironically, on the very same day the tariffs were announced, Hyundai opened an $8 billion manufacturing plant in Georgia.
Earlier this week, the company announced it would make a $21 billion investment in the United States — although most of that was already in the works before President Trump came into office.
Another country hit by the tariffs is Thailand, where many automakers from various countries manufacture vehicles.
The research branch of Thailand's Kasikornbank said the precise impact on the Thai economy remains uncertain.
