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Hyundai shares fall after Trump says tariffs on South Korean autos, pharma to rise to 25%
Hyundai and Kia expect record $254 billion sales in 2025 but forecast combined operating profit to drop 28% due to U.S. tariff increase, analysts said.
- On Monday, U.S. President Donald Trump said he was increasing U.S. tariffs on autos, pharmaceuticals and lumber from 15% to 25%, citing delays in South Korea's legislature approving a trade deal.
- After reiterating his `Great Deal`, President Donald Trump said Korea's legislature 'is not living up to its Deal with the United States' in a Truth Social post, criticizing delays.
- Hyundai Motor Co. and Kia Corp. face profit pressure despite strong U.S. demand, with Hyundai's 2025 sales projected at 187.9 trillion won but combined operating profit expected to decline due to tariffs.
- Analysts say a 2026 rebound is likely, supported by hybrid launches and tariff relief, with Lim Eun-young stating `A recovery in performance is expected in 2026 due to an improved product mix driven by hybrid-focused new vehicle launches, the effect of reduced U.S. tariffs and compensation for parts tariffs.`
- Combined figures show a gap versus prior forecasts as combined Hyundai Motor and Kia projections reach 302.9 trillion won in sales but only 21.6 trillion won in operating profit, below the earlier 30 trillion won estimate.
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Shares in South Korean automakers slide after Trump post on raising tariffs
Hyundai Motor shares fell 4% at the opening on Tuesday, after U.S. President Donald Trump said in a social media post that he will raise tariffs on South Korean goods including autos from 15% to 25%.
·United Kingdom
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Coverage Details
Total News Sources7
Leaning Left1Leaning Right1Center5Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
14%
C 72%
14%
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