In the US presidential election, candidate Trump was elected President of the United States.


With the second term in office, concerns in the global market have become a reality. In particular, it is certain that our economy, which is based on exports, will be significantly affected.

The problem is that the current situation is not one of continuous rule, but of a failed attempt at rule in the last presidential election and then being re-elected, so concerns are growing.

When you are first elected as president, there are trial and errors in appointing cabinet members or implementing policies, so things tend to be slow for the first year or so and it takes time to put on your own color, but this time, since the previous trial and error due to retaking power is being reestablished from the beginning, the next four years could go in a serious direction. And the aftereffects could last a long time.

Trump's biggest concern is the difficulty of figuring out direction. As they ignore existing rules like rugby balls and move as leaders in their own country-first policies and protectionism, giving up on being the 'world's policeman', there are many areas of concern for us, who are export-oriented.

All sectors will undergo a major transformation, but I would like to first mention the automobile industry.

First, it is a denial of various existing policies for eco-friendly cars. As I have mentioned often, since taking office, he has said that he will eliminate the mandatory sales of electric vehicles and completely cancel various electric vehicle and battery subsidy policies, which means that the activation of eco-friendly cars in the United States will be hindered.

The U.S. government's support for the astronomical costs invested to complete Hyundai Motor Group's electric vehicle plant in Georgia has also been problematic, but this means that it will have a major impact on the subsidy policy for electric vehicles produced there in the future.

Of course, considering these concerns, it can be said that the move to produce diverse products such as hybrid vehicles at the dedicated Georgia plant has become a reality that requires more proactive response.

Of course, since all new cars produced in the US are 'Made in the USA', even if there were no subsidies, the situation would be the same, so if various advantages such as marketing are highlighted, it is expected that the impact will be less.

However, it is inevitable that exporting finished vehicles produced domestically will be a problem.

Accordingly, the policy within the United States will be about increasing competitiveness for everyone as all related companies have the same starting point, but it is not the same position as Tesla's Elon Musk, who is expected to have an invisible preferential policy for going all-in on the Trump election.

Moreover, various institutional benefits such as autonomous driving operation permits can be expected. Concerns will grow over the possibility of Tesla's electric vehicle dominance, especially in the United States, and Hyundai Motor Group's marketing strategy for this is expected to be more effective if it utilizes a combination of cost-effective electric vehicles and hybrid vehicles, which are showing even more powerful performance.

Ultimately, as concerns about Tesla, the biggest competitor, grow, a solid strategic approach must be taken. It is inevitable that low-priced electric vehicles with better quality will be distributed. In other words, in terms of cost-effectiveness, the production of electric vehicles in the early 30 million won range should now become the norm.

Second, as the economic conflict between the US and China intensifies, it is expected that tariffs on China and other indiscriminate restrictions on various Chinese products will increase.

The imposition of a tariff of about 60% on Chinese products will immediately surface, and while indirect imports from Mexico and other countries will be institutionalized to block Chinese products, there are no concerns about Chinese products in the U.S., but the sales war between Chinese products, including Chinese electric vehicles and batteries, and our products in countries other than the U.S. is likely to intensify.

As the economic conflict between the US and China intensifies, we are more likely to be hit by a stray bullet. We need to prepare for this.

Third, it is a preparation for the Inflation Reduction Act (IRA). As mentioned earlier, the national foundation of Trump's policy is the abolition of this law. However, it will not be easy to obtain congressional approval through agreement of all the House and Senate, and we will have to consider the worst structure. This means that we need a plan B.

At the very least, the revision of this law will proceed. Naturally, the subsidy policy will be abolished, and the reduction or abolition of the tax benefits for electric vehicles and batteries that are already in place should also be taken into account.

Moreover, changes are expected in the IRA-related provisions regarding Foreign Interest Interest Groups (FEOCs). As regulations become more stringent, the exemption from importing raw materials from China is likely to be further strengthened, so if we do not consider overseas diversification in advance, there is a high possibility that this will develop into a major problem.

Of course, if there is a problem with our batteries, it will have a knock-on effect that will ultimately have a major impact on the production of electric vehicles in the United States, but it is highly likely that Trump will not even consider it due to his negative view of eco-friendly vehicles.

As these various related regulations are strengthened and it is expected that there will be a priority cutoff of raw materials from China for no reason, we must be even more thorough. Clear countermeasures such as strengthening overseas diversification are required.

The fourth is the return of existing internal combustion engine vehicles. Negative views on eco-friendly vehicles are widespread, preference for oil reserves is high, and negative views on greenhouse gases related to climate change are high, so it is natural to retreat from policies on carbon neutrality or reduction.

If the US is excluded, the global market will retreat and other countries will be negatively affected, which means that the goal of reducing global greenhouse gases is likely to be delayed. Naturally, it is possible to re-establish the goal of distributing eco-friendly cars and the goal of global greenhouse gases, and the aftereffects of serious global environmental changes are even more worrisome.

Ultimately, the electric vehicle chasm is further delayed and the goal is also delayed. Even without this, the electric vehicle chasm is expected to take about 3-4 years to reach its normal upward trajectory, around 2028-2029. As this is further delayed, concerns are growing.

There are growing concerns about a chain reaction of regression in many areas, including delays in the spread of electric vehicles and batteries as well as carbon dioxide reduction policies.

As we have the upper hand in electric vehicles and batteries, we are at greater risk of loss compared to other countries, so we need to come up with solid countermeasures.

Fifth, there is the issue of the surplus in comparison. Recently, the surplus with the US has been increasing in size, so there is a high possibility that the universal tariff imposition that candidate Trump has always mentioned will become a reality. The imposition of a tariff of about 10-20% can have a fatal impact on the export of comparison. The government is considering various measures such as increasing the import of energy such as US oil and gas to reduce the surplus with the US, but it is said that a more detailed policy is required.

This is especially concerning for Hyundai Motor Group. As Hyundai Motor Group’s trade surplus with the US has grown over the past few years and its market share has surpassed 10%, the US policy of restraint is becoming more severe.

Trump has declared that he will impose a 10% tariff on all countries, even those that are allies.

The probability of that happening is increasing. There have already been many similar cases in other cases. A double-digit market share and a sharp increase in trade surplus with the US are not necessarily good signs.

Hyundai Motor Group is also thoroughly prepared for this and is working to improve it through investment in the U.S. and local activation.

Moreover, from the perspective of the U.S. president, who is openly supporting union activities in the U.S., Trump's open support for low-income blue-collar workers is not a very good situation for the Hyundai Motor Group, which is increasing its investment in the U.S.

The reality is that the practice of 'giving medicine and then giving the bottle' is likely to become more widespread.

As the conditions for a strong union in the domestic market are already excessively pushed to the point of being unreasonable, and the situation in the US is also being further promoted, it can be said that there are many concerns both domestically and internationally.

The sixth is the global expansion of America First. Trump’s blatant America First policy is already diluting the meaning of allies, friends, and FTA countries, and is expanding to major global markets such as Europe, India, and Southeast Asia.

As mentioned earlier, FTAs and WTOs are important foundations for us as an export-oriented country, so the current emphasis on self-preference and protectionism is a very bad phenomenon. The easing of global free trade is expected to have a more fatal effect on us. Trump can be said to be the starting point for promoting this.

In addition, concerns about global markets due to Trump's presidency have begun to grow significantly. This is a time when everyone is preparing a plan B and worrying about an even worse situation.

In addition to the automobile industry, we are beginning to worry about problems that could affect our national economy and existence, such as the accumulated problems caused by changes in semiconductors, the intensifying economic conflict between the US and China, the renegotiation of defense spending, the strengthening of threats from North Korea, the Russian crisis and the reestablishment of relations with China, and the war in Ukraine and the Middle East.

I hope that we can come up with the best solution through more wise and thorough analysis. It is a time when integrated leadership without any ruling or opposition party is important for external economic activation and thorough national defense independence. The number of tasks to be solved is increasing. It is a time when we need to bring out our synergy more comprehensively.

As Trump's second term in office begins, the shortcomings appear significant, but I am confident that if we make cool-headed judgments and prepare thoroughly, there will be more opportunities to turn the shortcomings into strengths.