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Moody's: Trump's auto tariffs will have a ripple effect in the Asia-Pacific region.
Moody's report indicates that just as the trade war has already put pressure on economic growth, President Trump has recently announced the imposition of tariffs on foreign-made automobiles and Auto Parts, which could impact Global Auto Manufacturers. In the Asia-Pacific region, Japan and South Korea are the most affected, as cars shipped to the USA account for about 6% of Japan's exports and 4% of South Korea's exports. Rough calculations suggest that the tariffs could reduce GDP growth in Japan and South Korea by 0.2 to 0.5 percentage points. Moody's Analysts stated: "Given the long and complex supply chains in the automotive manufacturing industry, the effects will ripple throughout the entire region, causing significant damage."
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