President Donald Trump said he would impose a 25% tariff on imported cars, causing the stock prices of Hyundai Motor and Kia to record weakness in pre-market trading from 8 a.m. to 8:50 a.m. on the 27th.
Hyundai Motor shares finished at 216,000 won in pre-market trading on the same day, down 2.7% (6,000 won) from the previous day's closing price. Kia also saw a drop of 2.66% (2,700 won) to 98,700 won. Hyundai Mobis reported a decrease of 2.8% (8,000 won).
This appears to be the aftermath of renewed concerns about tariffs. On the 26th (local time), President Trump signed a proclamation imposing a 25% tariff on imported cars and key automotive parts. It will take effect on the 2nd of next month.
This can only serve as a burden for the South Korean automotive industry. Last year, South Korea's automotive exports totaled $70.8 billion (approximately 102 trillion won), with nearly half of that—$34.2 billion (approximately 49 trillion won)—going to the U.S.
However, forecasts suggest that Hyundai Motor Group could mitigate the tariff impact, as it established its eco-friendly vehicle dedicated factory, Metaplant America (HMGMA), in Georgia, and has decided to further expand production capacity.
HMGMA began production of the Ioniq 5 last year and has started mass production of the large electric sports utility vehicle (SUV) Ioniq 9 this month. Starting in 2026, Kia models will also be added to production.