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Hyundai Motor Group headquarters in Seoul. The automaker welcomed the U.S.–Korea tariff deal that reduces auto tariffs to 15%, pledging to strengthen its global competitiveness. / Source: Hyundai Motor Group

Hyundai Motor Group expressed gratitude to the South Korean government following the conclusion of follow-up negotiations on U.S.–Korea auto tariffs, pledging to minimize the impact of remaining duties while strengthening its brand and technological competitiveness.

In a statement released on October 29, Hyundai and Kia said, “We sincerely thank the government for its dedicated efforts throughout the difficult negotiation process that led to this agreement.”

The companies added, “We will continue to pursue diverse measures to minimize the effects of tariffs, while further enhancing quality, brand competitiveness, and technological innovation to strengthen our fundamentals.”

Under the newly concluded deal, tariffs on automobiles and parts exported from South Korea to the United States will be reduced from 25% to 15%. The two governments had reached a preliminary agreement in late July, but follow-up discussions had stalled for months.

Hyundai Motor Group had suffered an operating loss exceeding 1.5 trillion won in the second quarter alone due to the 25% tariff imposed since April. Analysts had warned that if the higher tariffs had continued through year-end, the group’s annual operating profit could have fallen by as much as 6 trillion won. The latest deal allows the automaker to avoid that worst-case scenario.