Japanese and South Korean car giants, from Toyota to Hyundai, see their securities prices on the capital markets falling after the Asian stock markets have been opened, following the announcement of the imposition of additional customs duties on imported vehicles.

About 02:10 (time of Greece) on the Stock Exchange Tokyothe titles of the big names in the sector were all falling: Toyota (–3.72%), Mitsubishi (–3.7%), Nissan (–3.2%), Honda (–2.77%). The general index also had a downward trend, though not so spectacular (–0.79%). In Seoul, the shares of Hyundai Motor (–3.15%) and Kia Corporation (–2%) were on a similar orbit.

US President Donald Trump added Wednesday new sector of activity in the trade war to all Azimuths he has launched, announcing additional tariffs of imported cars by 25%.

Duties will be applied ‘In all vehicles not made in the US’ and will be in force “On April 2nd”.

OR Japan It is particularly vulnerable. Last year, the automaker entered 28% of the goods of Japanese origin exported to the USor otherwise somewhere 40 billion dollars.

And the automotive industry is a pillar of the Japanese economy, 10% of its workforce is employed in it.

For the Japanese Giant Toyota, No. 1 worldwide, in front of its big opponent, the German Volkswagen, the US is a completely critical market. Japanese manufacturers also have a great presence in Mexico, in the context of interrelated industry production chains.

Each year, Japanese manufacturers export some 1.37 million vehicles to the US, although they are far from their climax to 3.43 million points in 1986, reminded last week by MasculinePresident of Jama, the Japan Automotive Association.

Would be mandatory following ‘Adaptations’ Production in the event of duties, warned Mr Katagama.

Toyota has recently announced that it will start production in its 11th in a row in the US in April. However, of its 2.33 million vehicles sorted in the US last year, only 1.27 million were produced there.

Toyota also has a factory in Canada (hybrids) and two more in Mexico, with their production mainly intended for the US market, which means that tariff barriers will hit them hard.

As if the additional duties on the products imported from Canada and Mexico —They have been suspended for the time being – they are again implemented, its vehicles imported from these two countries in the US will be charged 50%.

Cars represent 27% of South Korean exports in the US. Out of 2.78 million vehicles exported last year by South Koreaabout 1.43 million were destined for the US market and value of some $ 35 billion.

In order to calm the Trump government and mitigate as much as possible the impact of duties, Hyundai announced on Monday that it was intended to invest 21 billion dollars in the US in the next four years.