SEOUL, Jan 27 (Reuters) – Hyundai Motor shares fell as much as 4.8% in morning trade on Tuesday, after U.S. President Donald Trump said in a social media post that he will raise tariffs on South Korean goods including autos from 15% to 25%. Shares in sister automaker Kia Corp and affiliate Hyundai Mobis also […]
Business
Shares in South Korean automakers slide after Trump post on raising tariffs
Audio By Carbonatix
SEOUL, Jan 27 (Reuters) – Hyundai Motor shares fell as much as 4.8% in morning trade on Tuesday, after U.S. President Donald Trump said in a social media post that he will raise tariffs on South Korean goods including autos from 15% to 25%.
Shares in sister automaker Kia Corp and affiliate Hyundai Mobis also fell as much as 6% and 5.7%, respectively, compared with a 1.2% drop in the benchmark KOSPI.
Trump said on Monday he was increasing tariffs on South Korean imports into the United States related to autos, lumber and pharmaceuticals to 25%, as he accused the ally’s legislature of “not living up” to its trade deal with Washington.
It was not immediately clear when the tariff hike would take effect, or what specifically triggered Trump’s directive.
Some analysts said, however, that South Korea-U.S. trade negotiations had already been agreed upon at the presidential level and ultimately it should be a matter of time before any issues are resolved.
Senior analyst Kim Joon-sung at Meritz Securities said auto export tariffs to the United States are expected to be reconfirmed at 15%.
(Reporting by Joyce Lee and Heekyong Yang; Editing by Ed Davies)