Hyundai Motor and General Motors are set to benefit greatly from lower U.S. tariffs on imports from South Korea. The reduction from 25% to 15% will save both automakers billions in levies. Hyundai paid $1.2 billion in tariffs in Q3, and GM expects $3.5-$4.5 billion in tariff impacts for 2025.

The Trump administration plans to lower tariffs on certain products, including vehicles, from South Korea to 15%. Hyundai, the largest U.S. importer of new vehicles from South Korea, reported that tariffs cost the company $1.2 billion in Q3. GM anticipates a lower tariff bill for 2026.

Hyundai and GM are expected to benefit from the reduced tariffs on South Korean imports. Hyundai aims for record U.S. retail sales in 2026 despite the challenges of tariffs. GM plans to monitor and review the trade agreement details to ensure its high-quality, affordable crossovers produced in South Korea align with the new deal.

The U.S.-South Korea trade deal comes after an immigration raid at a battery plant jointly owned by Hyundai and LG Energy Solution in Georgia. About 475 workers, including over 300 South Koreans, were arrested in the September 4 raid. The trade agreement signifies progress following the tensions caused by the immigration raid.

Read more at CNBC: Trump’s South Korea tariff cuts are major boost for Hyundai and GM