Despite South Korea’s tariff-free status, automakers aren’t flocking there due to the country’s tough labor unions that are known for striking, as well as benefits of avoiding tariffs not outweighing the associated costs of moving there.
Automakers are also facing headwinds related to a trade war with China and threats of further tariffs up to 25 percent that could be implemented in November.
Businesses affected by the auto parts industry, including automotive repair shops, could scramble to cope with President Donald Trump’s tariffs on imported Chinese materials and goods, especially as those tariffs could limit where auto parts retailers can source their parts.
