2025-04-20
South Korea is considering purchasing liquefied natural gas (LNG) and sharing the cost of stationing U.S. troops in the country as bargaining chips in negotiations with the U.S., which President Trump is seeking to revive, but these are not sufficient materials, and the future is uncertain. South Korea is the second largest shipbuilding nation after China and can produce high value-added vessels such as LNG carriers.
The numbers vary greatly from country to country. This is strongly influenced by the geopolitical and economic intentions behind them. Broadly speaking, it seems that countries with strong economic and strategic ties to China have been given a higher tax rate as a form of sanction. Cambodia, Laos, Vietnam, and Myanmar are all examples of this. On the other hand, countries where U.S. companies have a direct presence have also been given a more restrained rate from a supply chain perspective. Furthermore, from a political and security perspective, the Philippines, for example, which has close military and diplomatic ties with the United States, can be said to be relatively privileged.
On April 12, as I write this, things are still in flux. There is a lot of media coverage every day, with reports on the tariffs reaching almost hysterical levels. The reciprocal tariff rate for Japan announced by the U.S. is 24%, which is an unexpectedly high level given the past relationship between the two countries.
As a result, Japan’s real GDP is expected to fall by about 0.6% in the short term (2025) and 1.8% in the medium term (2029). This will have a huge impact on Japan, which has maintained a growth rate of around 3% per year. It has been reported that Japan is currently negotiating with the Trump administration, but it is doubtful whether the current Japanese government will be able to negotiate effectively with the US. We will see whether the terms will be reconsidered after the negotiations in the future.
I would just like to point out one thing: President Trump talks about Japan’s failure to buy American cars as unfair and negligent, but this is a clear mistake. It is true that American cars do not sell well in Japan. GM is the only company with a formal dealer network in Japan, and it is even hard to find GM dealer shops in Japan. Chrysler pulled out in 2018 and Ford in 2016.
2025-03-18
The US administration has been pressuring India to reduce its import tariffs on cars, but India remains cautious about making drastic changes. While there is some openness to lowering tariffs on imported cars, a complete removal of these duties is unlikely in the near future. The ongoing discussions between the two countries may lead to some tariff adjustments, but India’s primary concern is protecting its local industries.
Source: https://news24online.com/ Read The Article
PSR Analysis. Even if India were to reduce tariffs to zero, the impact on the domestic automotive market would likely be minimal. The duty differences are relatively small, and the risk of imports flooding the market is low. India’s automotive component sector, especially in areas like EV differentials, bevel gears, and crankshafts, has been growing steadily. This sector benefits from India’s low labor costs, significantly lower than countries like Mexico and the US, giving it a competitive advantage in global supply chains.
2025-03-13
This month, Alternative Power Report Editor Guy Youngs brings readers up to date on Elon Musk and Tesla activities around the world. Sales are down, stock price is down, and consumer anger is up. Read about it in the March issue of the Alternative Power Report produced by Power Systems Research. The March report also contains information on EV battery development and the tariff wars launched by U.S. President Donald Trump. PSR
Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research
2025-02-24
Toyota has been revealed to be the largest auto industry funder of climate deniers in US Congress, according to a report released today by Public Citizen.
Toyota sells more gas-powered, polluting vehicles than any other company on Earth, and thus it has a vested interest in continuing to sell those polluting vehicles. But the problem is that gas-powered, polluting vehicles are not good for the health of humans or other living beings on this planet
Toyota has repeatedly ranked as one of the strongest funders of pro-pollution, anti-EV, and climate denying propaganda in the world
Source: Electrek: Read The Article
PSR Analysis: Previously, the auto industry has taken advantage of changes in government, trying to get money-saving clean air rules torpedoed even after implementation, but not this time, except for Toyota. The big concern behind all of this is whether Toyota will begin to struggle like Nissan and other legacy carmakers (with the impact of the EV revolution). PSR
Guy Youngs is Forecast & Adoption Lead at Power Systems Research
Aligned with the ‘Viksit Bharat’ vision, the 2025 budget proposes a forward-looking approach for the auto sector, fostering a sustainable ecosystem with financial allocations and duty exemptions. Among the highlights:
2025-01-27
“Looking ahead, we expect the gradual increase in infrastructure spending to boost consumption and improve demand, a revival across most CV segments, particularly in buses and vans, which are set to outperform last year’s levels. Intermediate, light and medium commercial vehicles (ILMCVs) are also likely to record similar or improved growth compared to fiscal year 2024.” – Girish Wagh, executive director at Tata Motors
Source: AutocarPro Read The Article
Market Dynamics and Growth Segments
The CV industry is set to benefit from the government’s pro-growth policies, particularly in infrastructure. The increased Capex outlay of US$115.5 billion ( ₹10 trillion) in the Union Budget 2023-24 is driving growth in sectors such as steel, cement, mining, and construction, which are key consumers of CVs.
2024-12-13
The declaration of martial law by South Korean President Yoon Suk Yeol has sparked a series of strikes by labor unions. The unions, which are the support base for the opposition parties calling for the president’s resignation, are mobilizing up to 200,000 people. Major industries such as the automobile industry are already affected.
The strike was led by the umbrella organization, the National Metal Workers’ Union. In addition to Hyundai Motor, which is a member of the union, more than 70,000 workers from other companies that support the Korean auto industry, such as Kia Motors, GM Korea and Hyundai Mobis, an auto parts manufacturer, have joined the strike.
2024-10-14
The European Union has approved a tariff increase on Chinese electric vehicles, according to the report from Agence France-Presse. Politicians and industry representatives from several European countries had previously expressed opposition to the European Commission’s investigation, and China also condemned the EU’s move to impose additional tariffs on Chinese electric vehicles as a typical act of protectionism.
Several European diplomats told Agence France-Presse that despite strong opposition led by Germany, the EU still approved the imposition of high tariffs on Chinese electric vehicles. According to the report, 10 countries, including France and Italy, supported the imposition of a tariff of up to 35.3% on top of the existing 10% tariff. Five countries, including Germany and Hungary, voted against, and another 12 countries abstained.
World Headquarters
St. Paul, MN USA
Detroit Regional Sales
Ann Arbor, MI USA
Campinas, Brazil
