On March 27, President Trump unveiled plans to impose a 25% tariff on all foreign-produced vehicles, prompting a drastic fall in the share prices of prominent Asian automakers and sparking fears of an automotive industry slowdown. The automotive sector serves as a pivotal engine of economic growth in nations like Japan and South Korea. Nevertheless, Moody's Analytics emphasized that automakers in developed economies of Northeast Asia confront more than just the immediate threat of tariffs. In their report, Stefan Angrick and Dave Shear highlighted that South Korean automakers maintain production capabilities in Mexico and Canada. Industry behemoths such as Toyota, Honda, Nissan, Mazda, and South Korea's Kia operate factories in these regions. Consequently, any further escalation of trade tensions between the United States and its neighboring countries could inflict even greater harm on these automakers.