As key tariff deadlines draw near, several countries have secured trade agreements with the US, with the automotive sector playing a central role in the negotiations. Industry experts note that while US President Donald Trump has advocated for increased domestic content in American-made vehicles, the local supply chain still lacks the robustness required to withstand future disruptions.

The automobile is undergoing its most dramatic transformation since the assembly line. What was once a purely mechanical machine is rapidly evolving into a complex software-driven platform, fundamentally reshaping how the automotive industry creates and delivers value. At the heart of this shift lies the rise of the software-defined vehicle (SDV).

As automakers in Europe, the US, and China race toward smarter, software-defined vehicles, a new controversy is emerging across markets: the rise of in-car subscription fees. Nowhere is the backlash more pronounced than in China, where rapid development of vehicle electrification and software capabilities has collided with a tech-savvy and vocal consumer base.

Japanese utility firm Kyushu Electric Power has entered a strategic partnership with Taiwan-based ProLogium to jointly develop superfluid inorganic all-solid-state lithium battery 24V modules.

Japan and the EU have each reached tariff agreements with the US, covering the car, energy, and IT sectors. While the period of low tariffs has ceased to exist, it is still early to say that the US auto industry has achieved a decisive victory.

Murata released its financial results for the second quarter of 2025, reporting consolidated operating profit of JPY61.6 billion (US$414.5 million), down 7.2% year-over-year; net profit was JPY49.7 billion, a decrease of 25% year-over-year. Although these figures exceeded market expectations, net profit declined for the first time in nearly two years due to yen appreciation and intense competition from Chinese manufacturers in the smartphone electronic components market.

LG Energy Solution (LGES) has signed a lithium iron phosphate (LFP) battery supply deal worth KRW5.94 trillion (approx. US$4.25 billion). Although the customer was not named due to a confidentiality clause, industry sources widely identify Tesla as the likely buyer.

Samsung's major AI chip contract with Tesla has sparked heated discussions, with Elon Musk pledging to personally step in to help Samsung improve production efficiency while hinting at an even higher contract value.

Hyundai Motor Group Executive Chair Chung Eui-sun will visit Washington on July 30 to back South Korea's final-stage trade negotiations with the US, joining Samsung Chairman Lee Jae-yong and Hanwha Vice Chair Dong-kwan (DK) Kim in lobbying efforts. The talks aim to reduce the 25% US import tariff on cars, a key issue for Korean automakers seeking to maintain price competitiveness.

The US Commerce Department imposed anti-dumping tariffs as high as 93.5% on Chinese graphite imports in mid-July 2024, bringing total duties to 160% when combined with existing countervailing measures and threatening to increase electric vehicle costs by US$1,000 to US$1,500 per unit.