Hyundai, Kia Face $5 Billion Hit From US-Korea Auto Tariff Deal

Hyundai Motor Co. and affiliate Kia Corp. could face as much as $5 billion in additional costs this year under a new trade agreement between the US and South Korea that imposes a 15% import tariff on automobiles.

While the South Korean auto industry avoided a worst-case 25% levy, the new duties are equivalent to 25% to 30% of Hyundai and Kia’s 2024 earnings before interest and taxes, according to Bloomberg Intelligence analyst Joanna Chen.

The deal, similar to the one reached with Japan, offers South Korean companies a degree of relief given the agreement comes just days ...