Hyundai Motor announced this Thursday a decline in its second-quarter operating profit, pressured by U.S. tariffs on vehicles and parts that have started to weigh on profits. The South Korean company also warned of an even greater impact on third-quarter results.
Hyundai revealed that it recorded an operating profit of $2.64 billion in the period from April to June, a decrease of 16% compared to the same period last year.
The automaker stated that U.S. tariffs cost $606.37 million in the second quarter, and that the impact will be greater in the period from July to September.
The South Korean brand expects that U.S. tariffs on Korean cars “will drop a bit” from the current 25%, but it is difficult to predict when a reduction in the tariffs imposed by Donald Trump will take place, said Hyundai Motor’s Chief Financial Officer, Lee Seung-jo.
The results from Hyundai show what is at stake for South Korean authorities, who are under pressure to reach a trade agreement with the U.S., after Japan and the U.S. administration have already reached an agreement to reduce tariffs for the Japanese automotive sector.
