Latest news with #Hyundai Motor
CNA
2 days ago
- Business
- CNA
US-South Korea trade talks postponed over Bessent schedule as tariff deadline looms
SEOUL: Talks between top South Korean and US officials to negotiate over United States President Donald Trump's tariffs have been postponed due to a scheduling conflict for US Treasury Secretary Scott Bessent, South Korea's finance ministry said on Thursday (Jul 24). The two sides will reschedule the meeting between Bessent and South Korean Finance Minister Koo Yun-cheol, as well as the top trade envoys of both countries, as soon as possible, the ministry said. Koo was set to board a flight for Washington on Thursday to attend the meeting on Friday in the hope of hammering out a deal that would spare Asia's fourth-largest economy from Trump's punishing 25 per cent tariffs set to take effect on Aug 1. The sudden announcement by the finance ministry an hour before Koo's departure cast fresh doubts about whether Seoul would be able to pull off an agreement to avert US import duties that could hit some of its major exporting industries. The benchmark Kospi stock index trimmed early gains to trade up 0.7 per cent as of 1.34am GMT (9.34am, Singapore time), as auto and auto parts makers fell on news of the postponed talks, with Hyundai Motor dropping as much as 1.8 per cent. Washington gave no further details for postponing Friday's meeting, the finance ministry said, though US officials are embroiled in a flurry of different negotiations. Bessent was set to meet China's Vice Premier He Lifeng in Sweden for a new round of trade talks ahead of the Aug 12 deadline set for Beijing. Washington is also moving towards a deal with the European Union. Minister for Trade Yeo Han-koo and Industry Minister Kim Jung-kwan, who have travelled to Washington this week, have been meeting with US officials as scheduled, the South Korean government said. Yeo will hold a meeting with US Trade Representative Jamieson Greer, the industry ministry said. Pressure on South Korea heightened this week after Japan clinched a deal with the US, which Trump said would see Tokyo allowing greater market access for American products including autos and some agricultural products. The two major Asian security allies of the US compete in areas such as autos and steel, and Japan's deal was seen by investors as a benchmark for the type of agreement Seoul should try to squeeze out in negotiations, analysts have said. The involvement of a range of ministerial-level officials from Seoul in broad discussions with US officials in recent days suggested the two sides were at work on a trade package that could potentially involve a range of sectors, including South Korea's sensitive farm markets. South Korean officials have said access to US markets is key to industrial cooperation between the allies that would help rebuild American manufacturing industries. Finance ministry officials in Seoul declined to comment on media reports that Washington is asking South Korea to set up a large-scale investment fund in the US to support the reconstruction of its manufacturing industry.
CNA
2 days ago
- Automotive
- CNA
Shares in Japanese, South Korean, European automakers surge on Tokyo trade deal
TOKYO/SEOUL :Shares of Japanese, South Korean and European automakers surged on Wednesday after U.S. President Donald Trump agreed to a trade deal with Tokyo that included reducing tariffs on Japanese auto imports to 15 per cent, a move that stoked optimism about a similar agreement for Seoul and Brussels. Shares of Toyota, the world's top automaker by sales, jumped more than 14 per cent while rival Honda advanced more than 11 per cent. The lower tariff - from as much as 27.5 per cent previously - would ease the pain for Japan's most important industry in a crucial market. South Korean and European automakers gained on hopes Seoul and the European Union would be able to get a similar reprieve. Hyundai Motor advanced more than 7 per cent and Kia rose more than 8 per cent. In Europe, Volvo Car jumped 14 per cent to the highest since May, while Porsche and Stellantis were up around 7 per cent each. The agreement with Japan, the world's fourth-largest economy and a pivotal U.S. ally in Asia, is by far the most significant among several trade deals struck by the White House ahead of an August 1 deadline when higher levies are due to kick in. Autos account for more than a quarter of Japan's exports to the United States. Trump, who has long complained about trade imbalances with Japan, had introduced a 25 per cent tariff on top of an already existing 2.5 per cent, meaning autos would be hit with a total levy of 27.5 per cent. The headline figure of 15 per cent announced by Prime Minister Shigeru Ishiba appears to include the pre-existing 2.5 per cent. The new rate "would allow Japan's beleaguered car makers to breathe a sigh of relief," said Stefan Angrick of Moody's Analytics in a note to clients. In return, Japan has pledged $550 billion in U.S.-bound investment and loans. Japan will also further open up to U.S. imports of cars, rice and other goods. "Lowering or removing trade barriers against U.S. vehicles won't make them any easier to drive on Tokyo's cramped streets, even if it would theoretically move the needle on Japan's surplus with the U.S.," Angrick said. EASING THE PAIN The lower tariffs would likely offer "significant upside potential" for the earnings of Japan's seven main automakers, Goldman Sachs analysts Kota Yuzawa and Ken Kawamoto said in a note. They estimated the gross tariff impact for the seven companies - which include Subaru, Mitsubishi Motors, Suzuki and Mazda - would be reduced to 1.89 trillion yen ($12.9 billion) from 3.47 trillion yen previously. Citi analysts said it was notable the tariffs for a major auto exporting country were reduced without a cap on shipments, which could have implications for negotiations with the EU and South Korea. Still, it is unlikely to be all smooth sailing for Asian automakers. So far, tariffs from Canada and Mexico remain in place at 25 per cent. Mexico in particular is a key production hub for European and Japanese automakers, including Nissan, and also home to a Kia factory. Nissan shares were up 8 per cent. Stellantis manufactures around 40 per cent of its North American vehicles in Mexico and Canada. News of Japan's trade deal is also likely to pile pressure on Seoul to come up with its own agreement ahead of the August 1 deadline. Seoul is taking a close look at the U.S.-Japan deal, South Korea's industry minister said. South Korea is a major competitor of Japan in areas such as autos and steel. It heads into high-level trade talks with the United States on Friday. For both Japan and South Korea, the auto industry provides major exports, millions of manufacturing jobs and is a deep source of national pride. Even with tariffs, the U.S. remains by far the most important market for Toyota, Hyundai, Honda, Nissan and others. At Toyota and Hyundai alone, North America accounts for at least 40 per cent of the revenue, filings show. The U.S. is Toyota's biggest market in terms of vehicles. It sold 2.3 million vehicles there in 2024, including its Lexus brand, accounting for more than a fifth of its global total. As a source of revenue, North America was second only to Japan in the last financial year. Meanwhile, Hyundai's North American revenue was the highest in almost a decade last year. It is also a key market for European automakers. Europe shipped nearly 758,000 cars worth 38.9 billion euros ($45.57 billion) to the U.S. in 2024, more than four times as many as in the other direction, according to data from European auto association ACEA.
Yahoo
3 days ago
- Business
- Yahoo
South Korea to scrutinise US-Japan trade deal as officials fly to Washington
By Joyce Lee and Hyunjoo Jin SEOUL (Reuters) -Seoul will take a close look at the terms of a U.S.-Japan trade deal, South Korea's industry minister said on Wednesday, holding out the prospect of greater cooperation in the energy and industrial sectors ahead of key trade talks in Washington. Japan competes with South Korea in areas such as autos and steel, so Tokyo's trade deal will pile pressure on Seoul to reach a similar level of 15%, or better, by an August 1 deadline to avert reciprocal U.S. tariffs of 25%. The new finance ministry and the top trade envoy of Asia's fourth-biggest economy are set for high-level trade talks with U.S. counterparts in Washington on Friday. "Investors see the Japan-U.S. deal as a benchmark for the Korean deal," said Kim Sung-rae, an analyst at Hanwha Investment & Securities, adding, "The deal would put pressure on Korean negotiators to come up with a similar, or better, deal." South Korea's benchmark KOSPI index edged down 0.3% on Wednesday, but shares in automakers and suppliers rallied after the Japan-U.S. deal. Hyundai Motor rose 6.8% and Kia jumped 6.4%. New President Lee Jae Myung has said Seoul wanted to avoid a comparative disadvantage with other countries in trade deals. "It will be difficult for South Korea to have U.S. tariff rates lower than 15% on Japan and 10% on Britain," said Kim Yong-jin, a management professor at Sogang University. Seoul needed to import more farm goods and energy, as well as boost investments, as Japan had done to reach a similar outcome, he added. South Korea will exclude the opening-up of its rice and beef markets as a bargaining chip in the Washington talks, instead considering more U.S. imports of crops for fuel, such as corn for bioethanol, the Yonhap News Agency said. "We will make an all-out effort to produce a positive sum result that will allow Korea-U.S. industrial and energy cooperation to be upgraded to the next level," Industry Minister Kim Jung-kwan said in a statement. Since the result could have a significant economic impact, South Korea would respond thoroughly while closely considering the sensitivity of its industry, he added. He will meet U.S. Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright, among others, he told reporters before boarding a plane to Washington for the talks. In a post on Truth Social, U.S. President Donald Trump said Japan would boost market access for American producers of cars, trucks, rice and certain agricultural products, among others. The deal's tariff of 15% on all Japanese imports is down from a proposed 25%, with Trump adding that it would include $550 billion of Japanese investments in the United States. Last week, South Korea's Chosun Ilbo newspaper said the United States had asked Seoul in talks this month to set up a large-scale investment fund to support the reconstruction of its manufacturing industry, without identifying a clear source. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
South Korea to scrutinise US-Japan trade deal as officials fly to Washington
SEOUL, July 23 (Reuters) - Seoul will take a close look at the terms of a U.S.-Japan trade deal, South Korea's industry minister said on Wednesday, holding out the prospect of greater cooperation in the energy and industrial sectors ahead of key trade talks in Washington. Japan competes with South Korea in areas such as autos and steel, so Tokyo's trade deal will pile pressure on Seoul to reach a similar level of 15%, or better, by an August 1 deadline to avert reciprocal U.S. tariffs of 25%. The new finance ministry and the top trade envoy of Asia's fourth-biggest economy are set for high-level trade talks with U.S. counterparts in Washington on Friday. "Investors see the Japan-U.S. deal as a benchmark for the Korean deal," said Kim Sung-rae, an analyst at Hanwha Investment & Securities, adding, "The deal would put pressure on Korean negotiators to come up with a similar, or better, deal." South Korea's benchmark KOSPI (.KS11), opens new tab index edged down 0.3% on Wednesday, but shares in automakers and suppliers rallied after the Japan-U.S. deal. Hyundai Motor ( opens new tab rose 6.8% and Kia ( opens new tab jumped 6.4%. New President Lee Jae Myung has said Seoul wanted to avoid a comparative disadvantage with other countries in trade deals. "It will be difficult for South Korea to have U.S. tariff rates lower than 15% on Japan and 10% on Britain," said Kim Yong-jin, a management professor at Sogang University. Seoul needed to import more farm goods and energy, as well as boost investments, as Japan had done to reach a similar outcome, he added. South Korea will exclude the opening-up of its rice and beef markets as a bargaining chip in the Washington talks, instead considering more U.S. imports of crops for fuel, such as corn for bioethanol, the Yonhap News Agency said. "We will make an all-out effort to produce a positive sum result that will allow Korea-U.S. industrial and energy cooperation to be upgraded to the next level," Industry Minister Kim Jung-kwan said in a statement. Since the result could have a significant economic impact, South Korea would respond thoroughly while closely considering the sensitivity of its industry, he added. He will meet U.S. Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright, among others, he told reporters before boarding a plane to Washington for the talks. In a post on Truth Social, U.S. President Donald Trump said Japan would boost market access for American producers of cars, trucks, rice and certain agricultural products, among others. The deal's tariff of 15% on all Japanese imports is down from a proposed 25%, with Trump adding that it would include $550 billion of Japanese investments in the United States. Last week, South Korea's Chosun Ilbo newspaper said the United States had asked Seoul in talks this month to set up a large-scale investment fund to support the reconstruction of its manufacturing industry, without identifying a clear source.
CNA
3 days ago
- Automotive
- CNA
Shares in South Korean automakers rally after US-Japan trade deal
SEOUL :Shares in South Korean automakers rallied on Wednesday after U.S. President Donald Trump said the U.S. and Japan had struck a trade deal that includes a 15 per cent tariff that will be levied on Japanese exports to the United States. Hyundai Motor rose 6.8 per cent, while Kia climbed 6.4 per cent. Japan and the United States have also agreed to set Japanese auto tariffs at 15 per cent, Japanese public broadcaster NHK said on Wednesday, citing government sources. South Korea is also heading into high-level trade talks with the United States, with South Korea's new finance minister and the country's top trade envoy scheduled to meet in Washington with U.S. counterparts on Friday.
