Hyundai Motor Company CEO Jose Munoz said Thursday that the new tariff agreement between South Korea and the United States removes uncertainties, enabling the business to move forward in predictable frameworks.
“This agreement ensures that the partnership (between Korea and the US) will continue flourishing, with predictable frameworks that benefit workers and communities in both nations,” the CEO wrote in a post on LinkedIn.
The remark came hours after Korea and the US reached a new trade agreement imposing a 15 percent tariff on Korean vehicle exports to the US, down from the 25 percent tariff that had been in effect since April 3.
He said the new tariff arrangement supports Hyundai Motor Group, the automaker’s parent company, in its efforts to strengthen ties between Korea’s technology base and the US manufacturing network.
"The agreement reinforces Hyundai Motor Group's $21 billion US investment strategy and our commitment to creating more than 100,000 direct and indirect American jobs," he said.
“This framework reinforces our localization strategy while maintaining the seamless collaboration between our Korean design, engineering, and manufacturing teams and our American manufacturing operations."
Although Hyundai Motor produced over 200,000 vehicles in the US during the first half of 2025, the higher tariff impacted the business significantly, as more than half of its US sales still rely on imports from Korea.
According to the company, the 25 percent tariff led to an estimated 828.2 billion won ($591.7 million) in operational losses during the second quarter, contributing to a 15.8 percent on-year decline in operating profit to 3.6 trillion won.
In response to the tariff reduction, Hyundai Motor Group also expressed appreciation on Thursday.
“We extend our deepest gratitude to the government departments and the National Assembly for their dedicated efforts in resolving the tariff issues with the US,” the automaker said.
However, the agreement also ends the zero-percent tariff Hyundai had enjoyed under the Korea-US Free Trade Agreement prior to April.
As a result, the company has lost its edge over Japanese and European automakers, which had faced a 2.5 percent tariff in the US but are now subject to the same 15 percent rate under their own trade deals.
Acknowledging this shift, the group stated that its automakers -- Hyundai Motor and Kia -- plan to mitigate the impact of the new tariff regime through comprehensive innovation initiatives.
forestjs@heraldcorp.com
