Hyundai Motor, South Korea’s largest automaker, donated US$1 million to re-elected President Donald Trump’s inaugural fund, according to information from the Wall Street Journal. The donation, the first in Hyundai’s history for an American presidential inauguration, is part of the company’s strategy to strengthen ties with the Trump administration and avoid the imposition of tariffs that could harm its business in the United States, the publication states.
The fear of tariffs is justified by threats made by Trump during his first administration and his re-election campaign. The Republican president threatened to impose tariffs on products from China, Mexico and Canada if these countries did not take measures to curb the flow of drugs and immigrants to the United States. Additionally, Trump promised to implement blanket tariffs of up to 20% on all goods imported into the US.
Hyundai would be particularly affected by these tariffs, as many of the parts used in its vehicles are manufactured abroad. Scott Lincicome, vice president of the Cato Institute, a specialist in international trade, told the Wall Street Journal that Hyundai would be impacted both by direct sales to the United States and by domestic production, due to its dependence on imported parts.
Continues after advertising
Read more:
The automaker has invested heavily in the US in recent years and the imposition of tariffs could harm its expansion plans, says the publication.
Hyundai’s donation to Trump’s inaugural fund guarantees the company six tickets to a private dinner with the president and first lady Melania Trump, as well as access to other exclusive events, the newspaper learned.
Continues after advertising
Other major automakers, including General Motors, Ford Motor and Toyota Motor, also donated $1 million each to Trump’s inaugural fund.
