Hyundai Motor (KS:005380) shares fell on Tuesday after U.S. President Donald Trump said he was increasing tariffs on some South Korean goods over a delay in Seoul’s enacting of a recent trade deal with Washington.
Hyundai slid as much as 5% in morning trade after Trump’s announcement, with the stock extending losses into a fourth straight session after hitting a series of record highs earlier in the month. Sister company Kia Corp (KS:000270) fell more than 3%.
The two are the largest exporters of South Korean vehicles to the U.S., and are highly sensitive to U.S. import tariffs. Hyundai had announced a slew of investments in the U.S. to appease the Trump administration and avoid steep tariffs.
Hyundai lagged a 0.7% gain in the KOSPI, as gains in chipmakers supported local stocks.
Trump said he was increasing tariffs on South Korean imports of autos, lumber, and pharmaceuticals to 25%, while criticizing Seoul for not enacting a trade deal with Washington.
Trump did not specify when the hike would take effect, spurring some hopes that he will not deliver on the increase. South Korean stocks broadly shrugged off early losses on this notion.
But Hyundai remained vulnerable to profit-taking, especially as optimism over the company’s prospects in robotics and autonomous driving spurred sharp gains through the month.
