South Korea’s automakers Hyundai and Kia face earnings pressure as the US has not yet cut tariffs on South Korean imports to 15%. The 25% import duties introduced by the US government in April have led to sharp earnings declines for the companies, which heavily rely on exports to the US.

US President Trump and South Korean President Lee announced a tentative trade agreement at the APEC Summit in October 2025. South Korea agreed to invest $350 billion in the US. This agreement came after negotiators resolved key issues, including tariffs on South Korean imports.

Hyundai, Kia, and GM Korea exported over 1.5 million vehicles to the US last year, totaling $38 billion. Hyundai and Kia aim to expand production capacity and local sourcing in the US. However, they feel disadvantaged compared to European and Japanese automakers who now face 15% import duties.

There are concerns that GM may leave South Korea if its products become uncompetitive in the US market. GM Korea shipped around 80% of its output to the US last year, producing 500,000 vehicles. The uncertainty of the US cutting tariffs to 15% is causing worry among industry observers in South Korea.

The US has not yet reduced tariffs on South Korean imports to 15% as agreed. South Korean industry observers are urging the Trump administration to retroactively cut tariffs from 25% to 15% starting from November 1. The delay in tariff reduction is causing uncertainty for South Korea’s automakers and their future in the US market.

Read more at Yahoo Finance: US yet to cut tariffs on Korean imports to 15%