Hyundai Shares Fall After Trump Signals Higher Tariffs on South Korean Imports

Seoul/Washington: Shares of Hyundai Motor fell on Monday after U.S. President Donald Trump said tariffs on South Korean autos, pharmaceuticals and lumber would be increased from 15% to 25%.

Trump said the decision was taken because South Korea’s legislature has not approved a trade agreement reached with the United States last year.

Following the announcement, Hyundai Motor shares dropped as much as 4.77% before recovering some losses. The stock was last trading lower in volatile market conditions. Shares of Hyundai’s subsidiary Kia and affiliate Hyundai Mobis also fell.

In a post on Truth Social, Trump said South Korea had failed to follow through on the agreement signed in July 2025 and reaffirmed during his visit to the country in October.

“Because the Korean Legislature hasn’t enacted our trade agreement, I am increasing tariffs on autos, lumber, pharmaceuticals and other reciprocal tariffs,” Trump said.

The South Korean government said it had not yet received official notification from the United States regarding the tariff increase. According to media reports, South Korea’s presidential office plans to hold discussions with relevant ministries to assess the situation.

South Korea is one of the largest exporters to the United States. U.S. imports from South Korea totaled $131.6 billion in 2024, according to official U.S. trade data.

The tariff move adds to uncertainty for South Korean exporters, particularly automakers, which rely heavily on the U.S. market.