In early trading on the 27th, Hyundai Motor is plunging more than 3%. Investor sentiment appears to have weakened after U.S. President Donald Trump said he would again raise reciprocal tariffs on automobiles.
As of 9:10 a.m. that day on the Korea Exchange, Hyundai Motor is trading at 474,000 won, down 18,500 won (3.76%) from the previous session.
On the night before, in a post on social media (SNS) Truth Social, President Trump said, "The Korean legislature is not honoring the agreement between Korea and the United States," and added, "Accordingly, I am raising tariffs on automobiles, lumber, pharmaceuticals, and all other reciprocal tariffs (country-specific tariffs) from 15% to 25%."
The approval by the National Assembly of Korea mentioned by President Trump is interpreted to mean the "Special Act for Strategic Investment Management for the United States (Special Act on Investment in the United States)." The fact sheet stated that on the condition that Korea makes $350 billion in investment in the United States, the United States would cut tariffs on Korean automobiles.
However, the securities industry said that the impact of President Trump's tariffs could be resolved in the short term. Kim Chang-ho, an analyst at Korea Investment & Securities Co., said, "If it is indeed true that the background for the tariff rate hike Trump proposed this time stems from the Korean National Assembly's ratification issue, the tariff rate is likely to be restored relatively quickly to 15% depending on the pace of the Korean government's policy decisions and ratification procedures going forward."