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Hankook Tire doubles U.S. production in Tennessee amid Trump tariff threats

Published: 26 Mar. 2025, 15:36

SARAH CHEA
[email protected]

Hankook & Company Chairman and CEO Cho Hyun-bum [HANKOOK & COMPANY]

Hankook & Company will double its U.S. production capacity for tires and batteries in Tennessee after U.S. President Donald Trump hinted at an incoming 25 percent tariff on automobiles and related parts.

Hankook plans to double its lead-acid battery production at the Tennessee plant to three million units, which is enough to be used in 3 million cars, Chairman and CEO Cho Hyun-bum said in a message sent to employees Wednesday.

Lead-acid battery, which is a core part of vehicles used to crank the engine, made up around 70 percent of Hankook & Company's overall sales last year.

Hankook Tire & Technology is also pushing to double its tire production capacity in their Tennessee factory, from the current 5.5 million units to 12 million per year.

The tire company will concentrate on tires dedicated to SUVs, for which consumer demand has been increasing recently, to improve its profitability.

“Hankook & Company is arranging countermeasures by circumspectly monitoring the Trump administration's trade and economic policies,” Chairman Cho said. “As a company that owns national key technologies, we are focusing on being the first mover to enhance national competitiveness and national prestige.”

Trump on Monday said he would “fairly soon” declare tariffs on imported vehicles and auto parts, which he'd previously said would be about 25 percent.

BY SARAH CHEA [[email protected]]