Hyundai Motor Co. Union Says Auto Tariffs Could Cost U.S. Jobs
The labor union at South Korea’s largest auto company says if President Donald Trump goes ahead with imposing 25 percent auto tariffs, it will hurt Hyundai’s U.S. sales and jeopardize some 200,000 jobs at Hyundai factory in Alabama.
The union also says South Korean carmakers were already penalized during the renegotiations of the bilateral trade agreement. Seoul and Washington agreed to postpone the removal of tariffs on Korean pickup trucks by another 20 years.
The U.S. Department of Commerce is investigating whether auto imports pose enough national security threats to justify tariffs. The European Union warned auto tariffs could lead to global retaliation.
Hyundai Motor is the world’s fifth-largest automaker along with Kia Motors.
Director of Human Resources & Administration for Hyundai Motor Manufacturing Alabama, LLC released the following statement regarding the tariffs warning:
Since I have no knowledge of the contract referenced in the article I cannot comment on that portion of the story. I can provide the following statement regarding potential tariffs.
Free and fair trade makes the United States a competitive market place. Broad restrictions, such as tariffs, on auto and auto part imports will raise costs for American consumers and families. Hyundai Motor Manufacturing Alabama and its suppliers have a significant manufacturing presence in Alabama. Their combined operations are responsible for 38,000 direct and indirect jobs in our state. HMMA and its suppliers generate an annual economic impact of $4.82 billion to the economy of the State of Alabama, accounting for 2 percent of Alabama’s Real Gross Domestic Product.
Like other automakers, and the broader U.S business community, we hope the Department of Commerce follows the facts and confirms that there is no national security justification for imposing tariffs on imported autos and auto parts.
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