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The Sun
a day ago
- Business
- The Sun
South Korea exports fall as tariffs hit US, China shipments
SEOUL: South Korea's exports fell in May for the first time in four months, as shipments to the United States and China dropped on global trade conflict triggered by U.S. President Donald Trump's sweeping tariffs. Exports from Asia's fourth-largest economy, an early bellwether for global trade, declined 1.3% from the same month last year to $57.27 billion, government data showed on Sunday. 'Declines in exports to both the United States and China, the two biggest markets, suggest U.S. tariff measures are having an impact on the global economy as well as our exports,' said South Korean Industry and Trade Minister Ahn Duk-geun. The first decline since January followed rises as strong chip sales had offset downward pressure from Trump's tariff threats. The May decline, however, was milder than the 2.7% fall forecast in a Reuters poll of economists. On a working-day adjusted basis, exports in fact rose 1.0%. China and the United States agreed in mid-May to a 90-day truce, significantly unwinding their tariffs on each other, after months of back-and-forth retaliatory measures, but Trump on Friday accused Beijing of violating the agreement and threatened to take tougher action. He also said he would double global tariffs on steel and aluminium to 50%. Trump's 'reciprocal tariffs', including 25% duties on South Korea, are on a 90-day pause for negotiations. South Korea's May shipments to the United States fell 8.1% and those to China fell 8.4%. Exports to the European Union rose 4.0%, those to Southeast Asian countries fell 1.3%, while those to Taiwan surged 49.6%. Exports of semiconductors jumped 21.2%, thanks to robust demand for advanced memory chips, but car exports fell 4.4% due to U.S. tariffs and production at Hyundai Motor's new factory in the U.S. state of Georgia, according to the ministry. South Korea's imports fell 5.3% to $50.33 billion, bringing the monthly trade balance to a surplus of $6.94 billion, the biggest since June 2024. (Reporting by Jihoon Lee; Editing by William
CNBC
a day ago
- Business
- CNBC
South Korea exports fall as tariffs hit U.S., China shipments
South Korea's exports fell in May for the first time in four months, as shipments to the United States and China dropped on global trade conflict triggered by U.S. President Donald Trump's sweeping tariffs. Exports from Asia's fourth-largest economy, an early bellwether for global trade, declined 1.3% from the same month last year to $57.27 billion, government data showed on Sunday. "Declines in exports to both the United States and China, the two biggest markets, suggest U.S. tariff measures are having an impact on the global economy as well as our exports," said South Korean Industry and Trade Minister Ahn Duk-geun. The first decline since January followed rises as strong chip sales had offset downward pressure from Trump's tariff threats. The May decline, however, was milder than the 2.7% fall forecast in a Reuters poll of economists. On a working-day adjusted basis, exports in fact rose 1.0%. China and the United States agreed in mid-May to a 90-day truce, significantly unwinding their tariffs on each other, after months of back-and-forth retaliatory measures, but Trump on Friday accused Beijing of violating the agreement and threatened to take tougher action. He also said he would double global tariffs on steel and aluminum to 50%. Trump's "reciprocal tariffs", including 25% duties on South Korea, are on a 90-day pause for negotiations. South Korea's May shipments to the United States fell 8.1% and those to China fell 8.4%. Exports to the European Union rose 4.0%, those to Southeast Asian countries fell 1.3%, while those to Taiwan surged 49.6%. Exports of semiconductors jumped 21.2%, thanks to robust demand for advanced memory chips, but car exports fell 4.4% due to U.S. tariffs and production at Hyundai Motor's new factory in the U.S. state of Georgia, according to the ministry. South Korea's imports fell 5.3% to $50.33 billion, bringing the monthly trade balance to a surplus of $6.94 billion, the biggest since June 2024.
Korea Herald
3 days ago
- Automotive
- Korea Herald
Hyundai Motor denies tariff-driven US price hike rumors
Hyundai Motor Company has pushed back against speculation that it plans to raise vehicle prices in the US in response to the Trump administration's recently imposed 25 percent tariff on imported cars. The denial follows a Bloomberg report on Thursday that said Hyundai is ready to increase retail prices in the US by around 1 percent as early as next week to offset the impact of the tariff. Citing an anonymous source, the report also mentioned a potential rise in shipping costs and the prices of certain optional features. 'We have not made any decision regarding price changes after the current price guarantee period ends on June 2,' a Hyundai Motor official said on Friday, clarifying that this is the company's official stance. The official explained that June is the period when the company conducts its regular price review to adjust for market changes, but this review is not related to the recently imposed tariff. The 25 percent tariff, which took effect April 3, has raised concerns within the industry. Hyundai, however, has consistently denied any direct link between the levy and retail pricing decisions. The company has pledged to maintain its current vehicle prices, including those for its luxury brand, Genesis, through June 2 despite the tariff. Hyundai Motor's CEO Jose Munoz, also stated during his speech at the Seoul Mobility Show 2025 on April 3 -- the same day the tariffs were imposed -- that there were no plans to raise prices in the US. In a separate speech in New York, however, he was reported to have hinted at possible price adjustments depending on future market conditions after June. Hyundai has come under growing pressure to review its US pricing strategy since the tariff was introduced. The company is expanding its local production capacity with the recent opening of Hyundai Motor Group Metaplant America in Georgia, which adds up to 300,000 units in annual capacity. However, a significant portion of its US vehicle supply is still imported from Korea. Hyundai Motor Company's Korean plants exported 637,638 units to the US last year, accounting for approximately 69.9 percent of its total US sales.
Straits Times
3 days ago
- Automotive
- Straits Times
Hyundai weighs sweeping US price hikes to blunt tariffs
Hyundai is considering a 1 per cent increase to the suggested retail price of every model in its lineup starting as soon as next week, sources say. PHOTO: BLOOMBERG DETROIT - Hyundai Motor is preparing to increase the price of all of its US vehicles as the automaker looks to cushion the blow from tariffs imposed by President Donald Trump, according to people familiar with the matter. The South Korean manufacturer is considering a 1 per cent increase to the suggested retail price of every model in its lineup starting as soon as next week, said the people. The move would apply to newly built vehicles, leaving cars already sitting on dealership lots unaffected. In addition, the company is likely to raise shipping charges and the fees for options such as floor mats and roof rails that are installed before cars arrive at retailers to avoid further raising the base price of its vehicles, the people said, cautioning that discussions are ongoing and could still change. Hyundai said its pricing strategy is designed to ensure it remains competitive, but that no final decisions have been made. 'This period marks our regular annual pricing review, guided by market dynamics and consumer demand, independent of tariffs,' the company said in a statement. 'We will continue to adapt to shifts in supply and demand, and regulations, with a flexible pricing strategy and targeted incentive programs.' The move would be one of the most sweeping actions taken by an automaker in response to the steep tariffs Mr Trump has imposed on imported cars and parts. Hyundai, among the top auto sellers in the United States, had previously pledged to hold prices steady until June 2 for its namesake brand and the upscale Genesis line. Hyundai chief executive officer José Muñoz told Bloomberg in April that he didn't anticipate a sudden, large jump in prices but didn't say what was planned for later in the year. The price hike and higher fees would add several hundred dollars at least to each of its vehicles. Despite having large assembly plants in the US, Hyundai one of the largest importers of finished vehicles in the country. Including its Kia and Genesis affiliate brands, Hyundai brought about 1.1 million vehicles into the US last year, trailing only Toyota Motor and General Motors, which each imported roughly 1.2 million cars. Hyundai revealed plans in March to make a record US$21 billion (S$27 billion) investment in the US to localize more parts and vehicle production, including a new steel plant in Louisiana and an expansion of its new assembly plant in Savannah, Georgia. At full capacity, the investments will allow Hyundai and Genesis to make 70 per cent of what they sell in the US at domestic plants, Mr Muñoz has said. Hyundai chairman Chung Euisun visited Mr Trump at the White House to mark the announcement, which was hailed by the president. But it has not led to much tariff relief for the automaker or South Korea. Carmakers have been slow to increase prices even as industry leaders have warned that the tariffs risk adding thousands of dollars in additional costs to each vehicle. Ford Motor has raised prices on three models it imports from Mexico, while several other carmakers have pulled their financial targets due to global trade instability. Subaru of America confirmed earlier in May that it has also raised prices on US vehicles. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Auto Blog
3 days ago
- Automotive
- Auto Blog
Bad News for Buyers? Hyundai CEO Stays Silent on Future Price Freezes
A potential change of plans On April 4, Hyundai announced to concerned buyers that Hyundai and Genesis vehicles would not see any price increases for the next two months to calm buyers' concerns about President Trump's 25% tariff on foreign auto imports and their impact on local showrooms. However, in a new interview with Automotive News, Hyundai Motor Co. CEO Jose Muñoz maintained that other external factors are affecting the price of their cars, which can change. 0:05 / 0:09 2025 Audi S3: 4 reasons to love it, 2 reasons to think twice Watch More Hyundai Global President and Chief Operating Officer Jose Munoz poses beside the newly unveiled 2024 Santa Fe at the Hyundai press conference at Automobility LA. — Source:Tariffs are not the only factor affecting price, says Muñoz The current Trump administration and its heavy tariffs get much of the attention when it comes to the uncertainty surrounding the new car market; however, Hyundai CEO Jose Muñoz told AN that many dynamics are at play when it comes to maintaining the 'momentum' when it comes to sales growth. In his view, tariffs aren't the main concern when it comes to selling cars to customers. Instead, a more pressing set of numbers has consequences for both Main Street and Wall Street. 'There are many discussions between different countries and the U.S. concerning tariffs, which will have an impact, but the most important factor impacting sales, from my point of view, is interest rates,' says Muñoz. 'If the Fed lowers the rates, we will see an increase in sales, and maybe the industry will deliver solid growth.' Hyundai line workers assemble a Hyundai IONIQ 5 on the assembly line at Hyundai Metaplant Georgia Hyundai and Genesis's price guarantee programs, 'Customer Assurance' and 'Genesis Cares,' will end on June 2. In light of this, Muñoz emphasized that he 'cannot guarantee' that Hyundai will 'maintain the current policy,' adding that it depends on a vehicle-to-vehicle basis and that this time of year is typically when vehicles get a bit more expensive. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. 'Typically, by this time of the year, we see the introduction of new model years with new features, and those moments trigger price increases,' he said. 'If we have to maintain competitiveness, we will. Product design, features, quality, and good advertising are the key characteristics of the business, and if you try to overdo it because of other factors not critical for the consumers, then you end up making mistakes.' When asked if prices could rise as much as 10-15%, per analysts' predictions, Muñoz said that MSRPs will not rise; however, he cannot guarantee that dealers will sell at those prices, adding that they will take any 'opportunity to maximize the revenue of cars not impacted by tariffs.' Hyundai CEO says building cars in America will help fight tariffs Although consumers have been concerned about pricing, the Hyundai CEO states that its long-term plan is not to apply 'tactical pricing or incentives' to combat the tariff impact but rather to invest more in localizing the production of its products. In March, the Hyundai Motor Group announced a massive $21 billion investment in U.S. manufacturing, including a $6 billion Hyundai Steel mill in Louisiana. 2025 Hyundai Kona Electric — Source: Hyundai This commitment adds to its sizable American footprint. It operates three vehicle factories in the United States: Hyundai Motor Manufacturing Alabama in Montgomery, Alabama, Kia Autoland Georgia in West Point, Georgia, and the Hyundai Motor Group's Metaplant outside Savannah, Georgia. Muñoz states that these plants benefit from vertical integration and a flexible supply chain that can adjust to varying production levels, which helped it weather the pandemic. 'In parallel, we are working through the supply chain. During the pandemic, we had the highest level of production, and we did it through high flexibility. We were able to change the production plans daily depending on the components that we got, particularly the chips that were in very short supply. So now we are reassessing the entire supply chain to optimize, limit, and minimize the cost so we can improve on our margins.' Final thoughts When I reported that Hyundai would follow other brands like Ford in committing to no MSRP adjustments until June, my biggest worry was 'Well, what about after June?' As I said before, these 'protections' are only a temporary band-aid on a bigger problem that can only last so long. Unfortunately, this situation leaves automakers in the middle between penny-pinching consumers and the powers inside the Beltway.
