Hyundai, Kia face pressure to hike prices amid US tariff impact

Amid widespread forecasts of double-digit declines in second-quarter operating profit, speculation is growing that Hyundai Motor and Kia may need to consider raising their prices in the United States to offset potential earnings losses caused by the country’s 25 percent auto tariff. Supporting this speculation is the likelihood of an even larger profit decline in the following quarter, driven by shrinking U.S. inventory that has stopped them from raising prices so far. Korean auto exports to the U.S. have been subject to a 25 percent tariff since early April, with Seoul currently in talks with Washington seeking an exemption or a reduction in the rate. According to data from market tracker FnGuide, Hyundai Motor is estimated to have chalked up an operating profit of 3.63 trillion won ($2.66 billion) between April and June, down 15.1 percent from a year earlier. Kia operating profit is also forecast to have dropped by 13.7 percent to 3.14 trillion won during the same period. In response to the auto tariff, both firms have resorted to sales of vehicles already stocked in the U.S. to mainWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times