Impact of U.S. Tariff Policy Revealed, Modern Car Q4 Profit Decline Exceeds Expectations

Hyundai Motor Company announced in its financial report on January 29th that due to the impact of US tariff policies offsetting the benefits of the depreciation of the South Korean won, the company's operating profit in the fourth quarter of 2025 plunged by 40% compared to the same period last year, significantly below analysts' expectations. This marks the third consecutive quarter of declining profits for the South Korean automaker. Last April, the US government imposed a 25% tariff on imported cars, which was later reduced to 15% in November after reaching a trade agreement with South Korea. President Trump stated on Tuesday this week that he will increase tariffs on South Korean cars and other imported goods, citing the delay in the implementation of the trade agreement that led to the reduction of car tariffs last year. Hyundai Motor, together with its subsidiary Kia Motors, make up the third largest automobile group in the world in terms of sales. The financial report showed that Hyundai Motor's operating profit in the fourth quarter of 2025 was 17 trillion South Korean won, compared to 28 trillion South Korean won in the same period last year.