Hyundai Motor Group under mounting strain from delay in tariff cut

Hyundai Motor Group faces a mounting earnings strain amid Korea’s lingering discord with the United States over when to implement their recently agreed-upon 15 percent auto tariff. The delay adds to the growing financial burden of the Korean carmaker, as it is still subject to a 25 percent tariff on cars exported to the U.S. Later last month during a summit between President Lee Jae Myung and U.S. President Donald Trump, both countries reached a detailed follow-up trade agreement to cut the figure down to 15 percent. At that time, Korea’s presidential office said both countries’ joint fact sheet — which contains a detailed timeline for the tariff cut — would be released in two to three days. The schedule, however, has been protracted for about two weeks for no confirmed reasons. This leaves Hyundai Motor and Kia — which rely heavily on exports to the U.S. — exposed to additional earnings losses as they still face the earlier tariff rate of 25 percent. Korea’s basic stance is to request the U.S. to apply the 15 percent auto tariff retroactively from Nov. 1, but it remains uWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times