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What's at stake for Asian companies in a Trump presidency

Donald Trump has actually been chosen U.S. president, topping an amazing comeback 4 years after he was voted out of the White Home.

Here is what business in Asia have bought the United States, what Trump has stated about them and what possible U.S. service policy changes would mean for Asian companies.

SEMICONDUCTORS

Asian chipmakers, led by Taiwan's TSMC and South Korea's Samsung Electronics, have jointly invested a minimum of $117 billion in the U.S., encouraged by the current U.S. administration's essential initiative aimed at lowering its dependence on Asia for high-end chips.

In return, they have gotten or been vowed grants and financial support amounting to a minimum of $18.85 billion, according to Reuters' calculation.

It's unclear if Trump would roll back the scheme, which he called bad. He made discuss the project path that Chinese-claimed Taiwan must pay to be protected and likewise implicated the island of stealing business from American semiconductor companies.

Taiwan's GlobalWafers said on Thursday it expects the subsidy program to continue in a Trump administration.

ELECTRIC VEHICLES

Trump has actually drifted the concept of a 10% or more tariff on all goods imported into the U.S., a move he states would remove the trade deficit.

He has likewise threatened a 200% tariff on some imported cars, and is especially identified to keep cars from Mexico from entering into the nation. The tariff would hit numerous Asian automakers consisting of Honda Motor, Nissan Motor and Kia Corp.

. Honda chief operating officer Shinji Aoyama alerted on Wednesday that tariffs on vehicles imported from Mexico would have a huge effect as the business sends 80% of its production there to the U.S. market.

He said if such procedures became permanent, Honda would have to think about moving production to the U.S. or another tariff-free country in the long run.

EV BATTERIES

South Korean battery makers and Japan's Panasonic, which have numerous EV battery factories operating in the United States, are now bracing for a prospective roll back of President Joe Biden's signature clean energy policy and looser emissions guidelines.

Trump informed Reuters in August that he might remove a $7,500. tax credit for EV purchases.

Because 2023, LG Energy Solution and SK On have. gotten 2.6 billion won ($ 1.9 million) in U.S. federal credits. for making battery cells in the United States, according to. Reuters' estimation based on their stock exchange filings.

Without those manufacturing credits, they would have posted. losses, the companies stated.

However, U.S. limitations on Chinese batteries might remain. in location or strengthen under a second Trump administration, a. policy that would benefit rival South Korean producers.

NIPPON STEEL

The U.S. government has yet to approve Nippon Steel's. $ 14.9 billion bid for U.S. Steel, a politically. sensitive offer due to opposition from the U.S. firm's labour. union.

Trump has stated he would obstruct the deal, as he has looked for to. charm union voters. Biden has likewise stated he is opposed to the. takeover.

The Committee on Foreign Investment in the United States. said in August the offer presented a risk to national security as it. threatened the steel supply chain for vital U.S. industries,. prompting Nippon Steel to pledge investments worth billions in. U.S. Steel facilities that otherwise would have been idled.

CHINA

Chinese businesses are waiting to see if Trump makes good on. a threat to enforce tariffs of 60% or more on imports from China,. which could start a fresh trade war reminiscent of the one. he waged during his 2017-2021 presidency.

The trade war hit sectors throughout the board, from. manufacturers of vacuum cleaners to machinery, with tariffs. troubled more than $200 billion of items. The Biden. administration has actually kept the majority of the tariffs in location.

Several Chinese business were likewise hit with export controls. by the Trump administration pointing out nationwide security, such as. Huawei Technologies which was disallowed from buying high-end. chips, crippling its mobile phone company.

Other Chinese tech companies targeted include ByteDance and. Tencent, whose particular TikTok and WeChat social. media apps came under danger of being banned from running in. the U.S.

. Some Chinese exporters are making strategies to speed up. moving or open factories outside China to manage Trump's. return.

However some Chinese tech executives are betting that Trump's. combative approach might operate in their favour, as U.S. efforts. to slow China's technological development may fail to acquire. international assistance.

Nazak Nikakhtar, a Commerce Department official under Trump. who knows his existing advisers, stated she expects a Trump. administration to be far more aggressive about export control. policies towards China.

(source: Reuters)