SEOUL, Jan 27 (Reuters) – Shares of South Korea’s automakers clawed back early losses after U.S. President Donald Trump said in a social media post he would raise tariffs on South Korean goods, including autos, to 25% from 15%. Shares of Hyundai Motor reversed course to gain 1.1% after falling as much as 4.8% earlier, […]
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South Korea auto stocks recover from early slump after Trump tariff comments
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SEOUL, Jan 27 (Reuters) – Shares of South Korea’s automakers clawed back early losses after U.S. President Donald Trump said in a social media post he would raise tariffs on South Korean goods, including autos, to 25% from 15%.
Shares of Hyundai Motor reversed course to gain 1.1% after falling as much as 4.8% earlier, while sister company Kia Corp was down 1% after dropping as much as 6%. Hyundai Mobis was trading down 0.1% after earlier losses of up to 5.7%.
The benchmark KOSPI was trading up 1.2% as of 0150 GMT.
The won weakened by 0.52% to 1,451.1 per dollar as soon as dollar-won onshore markets opened in Seoul at 0000 GMT, taking a hit after strengthening as much as 2% a day earlier.
Trump said on Monday he was increasing tariffs on South Korean imports into the United States related to autos, lumber and pharmaceuticals to 25%, accusing the country’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 at the presidential level.
Kim Joon-sung, senior analyst at Meritz Securities, said auto export tariffs to the United States were expected to be reconfirmed at 15%.
(Reporting by Joyce Lee and Heekyong Yang; Editing by Ed Davies and Kate Mayberry)