Hyundai Motor CEO says tariff deal removed uncertainties in US operations
'This agreement ensures that the partnership (between Korea and the US) will continue flourishing, with predictable frameworks that benefit workers and communities in both nations,' the CEO wrote in a post on LinkedIn.
The remark came hours after Korea and the US reached a new trade agreement imposing a 15 percent tariff on Korean vehicle exports to the US, down from the 25 percent tariff that had been in effect since April 3.
He said the new tariff arrangement supports Hyundai Motor Group, the automaker's parent company, in its efforts to strengthen ties between Korea's technology base and the US manufacturing network.
"The agreement reinforces Hyundai Motor Group's $21 billion US investment strategy and our commitment to creating more than 100,000 direct and indirect American jobs," he said.
'This framework reinforces our localization strategy while maintaining the seamless collaboration between our Korean design, engineering, and manufacturing teams and our American manufacturing operations."
Although Hyundai Motor produced over 200,000 vehicles in the US during the first half of 2025, the higher tariff impacted the business significantly, as more than half of its US sales still rely on imports from Korea.
According to the company, the 25 percent tariff led to an estimated 828.2 billion won ($591.7 million) in operational losses during the second quarter, contributing to a 15.8 percent on-year decline in operating profit to 3.6 trillion won.
In response to the tariff reduction, Hyundai Motor Group also expressed appreciation on Thursday.
'We extend our deepest gratitude to the government departments and the National Assembly for their dedicated efforts in resolving the tariff issues with the US,' the automaker said.
However, the agreement also ends the zero-percent tariff Hyundai had enjoyed under the Korea-US Free Trade Agreement prior to April.
As a result, the company has lost its edge over Japanese and European automakers, which had faced a 2.5 percent tariff in the US but are now subject to the same 15 percent rate under their own trade deals.
Acknowledging this shift, the group stated that its automakers -- Hyundai Motor and Kia -- plan to mitigate the impact of the new tariff regime through comprehensive innovation initiatives.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
15 minutes ago
- Korea Herald
Apple to invest additional $100b in domestic manufacturing
WASHINGTON (AFP) -- Apple will invest an additional $100 billion in the United States, taking its total pledge to $600 billion over the next four years, US President Donald Trump said Wednesday. Trump announced the increased commitment at the White House alongside the tech giant's CEO Tim Cook, calling it "the largest investment Apple has made in America." "Apple will massively increase spending on its domestic supply chain," Trump added, highlighting a new production facility for the glass used to make iPhone screens in Kentucky. In February, Apple said it would spend more than $500 billion in the United States and hire 20,000 people, with Trump quickly taking credit for the decision. It builds on plans announced in 2021, when the company founded by Steve Jobs said it would invest $430 billion in the country and add 20,000 jobs over the next five years. "This year alone, American manufacturers are on track to make 19 billion chips for Apple in 24 factories across 12 different states," Cook said in the Oval Office. Trump, who has pushed US companies to shift manufacturing home by slapping tariffs on trading partners, claimed that his administration was to thank for the investment. "This is a significant step toward the ultimate goal of ... ensuring that iPhones sold in the United States of America also are made in America," Trump said. Cook later clarified that, while many iPhone components will be manufactured in the United States, the complete assembly of iPhones will still be conducted overseas. "If you look at the bulk of it, we're doing a lot of the semiconductors here, we're doing the glass here, we're doing the Face ID module here ... and we're doing these for products sold elsewhere in the world," Cook said. Trump has repeatedly said he plans to impose a "100 percent" tariff on imported semiconductors, a major export of Taiwan, South Korea, China and Japan. "We're going to be putting a very large tariff on chips and semiconductors," he told reporters Wednesday at the White House. While he did not offer a timetable for enactment of the new tech levies, on Tuesday he said fresh tariffs on imported pharmaceuticals and semiconductors and chips could be unveiled within the coming week. The US is "going to be very rich and it's companies like Apple, they're coming home," Trump said. Trump specified further that "Apple will help develop and manufacture semiconductors and semiconductor equipment in Texas, Utah, Arizona and New York." He noted that if tech companies commit to manufacturing their wares in the US, "there will be no charge." Apple reported a quarterly profit of $23.4 billion in late July, topping forecasts despite facing higher costs due to Trump's sweeping levies. The tariffs are essentially a tax paid by companies importing goods to the United States. This means Apple is on the hook for tariffs on iPhones and other products or components it brings into the country from abroad.
Korea Herald
an hour ago
- Korea Herald
HD Hyundai partners with US defense firm Anduril for naval USV development
South Korean shipbuilding conglomerate HD Hyundai Co. said Thursday it has signed an agreement with US defense technology company Anduril Industries Inc. to expand cooperation in the naval defense sector, particularly in the development of unmanned surface vessels. The two companies signed a memorandum of agreement on Wednesday at HD Hyundai's global research center in Seongnam, south of Seoul, as a follow-up to an earlier memorandum of understanding signed in April. Under the MOA, HD Hyundai will integrate Anduril's autonomous mission execution systems into its USVs currently under development for the Korean market. HD Hyundai will provide artificial intelligence-based autonomy solutions for Anduril's manned and unmanned naval platforms for the US market, in addition to handling ship design and construction. The companies also agreed to jointly develop prototype USVs tailored for both the Korean and US markets, with the Korean prototype slated for release around 2027. Founded in 2017, Anduril has drawn attention for its software-first approach to defense development. The company is known for its AI-powered mission control systems, as well as its autonomous surveillance and reconnaissance technologies. Anduril currently supplies systems to the US Navy, the Department of Defense and the Australian military. "USVs are at the core of future naval warfare," said Joo Won-ho, head of HD Hyundai Heavy Industries' special ship business division. "Through collaboration with Anduril, which possesses world-class autonomous mission technology, we aim to develop the most advanced unmanned naval platforms." (Yonhap)
Korea Herald
an hour ago
- Korea Herald
Sales of US cars rise in S. Korea amid non-tariff barrier discussions
Sales of US passenger car imports in South Korea have increased substantially in recent months, industry data showed Thursday, amid discussions between Seoul and Washington over easing non-tariff barriers in the auto sector. According to the data compiled by auto industry tracker Carisyou, 7,362 passenger cars of American brands were sold in the country in July, accounting for 27.2 percent of total imported vehicle sales last month. For the January-July period, US auto imports totaled 32,069 units, taking up 19.4 percent of the total auto import market. The share more than doubled from 2016, when American auto imports accounted for 8.2 percent of all foreign-made cars in South Korea. The sharp rise is largely attributed to the growing popularity of US electric vehicle maker Tesla Inc. in the country. Tesla sold 26,585 vehicles during the first seven months of the year. The company set record sales in South Korea last year by selling 29,754 vehicles, driven by its competitively priced China-made Model Y equipped with lithium-iron-phosphate batteries. Industry observers say American automakers are likely to gain further traction in the South Korean market following the recent removal of regulatory limits on US imports, including a 50,000-unit safety cap, as part the two countries' tariff deal. (Yonhap)
