South Korea and Japan saw their markets tumble after U.S. President Donald Trump imposed up to 25% tariffs on all cars and related parts going to the United States. The Asian allies have pledged to respond.
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00:00Stock markets in Tokyo tumble after U.S. President Donald Trump announced a levy of up to 25 percent on all foreign cars and related parts going to the U.S.
00:12I'm worried.
00:15The higher the tariffs, the higher the prices will be.
00:19I'm worried about inflation.
00:23I'm worried that the relationship between Japan and the U.S. will change.
00:38Trump says the tariffs will help revive car production in the U.S. and restore what was taken by, quote, friend and foe.
00:47And frankly, friend has been oftentimes much worse than foe.
00:51Japan, one of the U.S.'s closest allies in Asia, ranks in the top three sellers of cars to the United States.
00:58Its Prime Minister, Ishibashi Guru, carefully weighing a response.
01:03We have to come up with an appropriate response to this announcement.
01:09Of course, all options are subject to consideration.
01:15Meanwhile, U.S. ally South Korea, also a top three carmaker for the U.S., vows emergency measures by next month.
01:23Although the global uncertainty is growing, our companies will not fight alone.
01:29Auto industry experts have warned that Trump's tariffs will hurt American customers the most,
01:35as the tax will likely be tagged onto the price of foreign cars.
01:40In the state of Georgia, one auto parts seller says he's not too worried, even though 90 percent of his goods are imported from Taiwan.
01:50All this stuff on this aisle right here, left and right, it all came from Taiwan.
01:55Ernie Simmons says he sees Trump's tariffs as a way to even the playing field for the benefit of American businesses.
02:03I also believe that these countries will come to the realization that they're not going to get a free ride anymore.
02:09And they're going to have to treat us when we export something to them the same way that we treat them when they import to us.
02:15Despite being a major exporter of auto parts, Taiwanese cars mostly cater to domestic buyers.
02:23So officials here don't expect to be affected by the latest U.S. tariffs.
02:28But Trump has also threatened to tax other sectors like chips, Taiwan's most valuable industry.
02:35And Taipei is still bracing for impact.
02:39Next week, Trump is set to reveal a long-promised reciprocal tariff plan, targeting countries that run large trade surpluses with the U.S.
03:00Taiwan, Japan and South Korea are among the top countries that fit that bill.
03:06All three friends to the U.S. now watching closely for what its president will do.
03:12Chris Ma and Joyce Sin for Taiwan Plus.