The United States and South Korea reached a free trade agreement on the 2nd, and the two countries will cancel each other's automobile import tariffs. Industry insiders believe that the biggest beneficiaries after the abolition of tariffs may not be Hyundai Motor Corporation, the Korean auto industry hegemon, or the three American auto giants led by General Motors, but Japanese auto manufacturers such as Toyota and Honda.
Bloomberg News reported on the 3rd that, according to the free trade agreement reached between the United States and South Korea, South Korea agreed to cancel the import tariff of 8% on imports of American made cars; Accordingly, the United States will also terminate the import tariff of 2.5% on imports of Korean made vehicles. This agreement not only enhances the competitiveness of American and Korean cars in the other market, but also provides new growth opportunities for Japanese cars such as Toyota.
Industry experts pointed out that, since the United States and South Korea reached a free trade agreement, South Korea will be exempted from tariffs on imports of American made vehicles while retaining 8% of import taxes on Japanese made vehicles. In this case, Toyota will have a stronger price through production in the United States and re export to South Korea competitive power And will challenge Hyundai and other Korean local car dealers. At present, Toyota has a considerable production capacity in the United States. In addition to the existing four manufacturing plants, a fifth plant is also under construction.
(According to Xinhua News Agency)
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