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Hyundai scores a big win as it chases a sixth straight record sales year in the US
Hyundai is the biggest winner from the US and South Korea’s new trade deal, lowering the tariff rate on imported vehicles to 15%.
Hyundai gets a break with lower US tariffs
Hyundai has committed $26 billion toward its US operations, among the biggest of any automaker. Despite this, the automaker has shelled out billions since the Trump administration slapped a 25% tariff on South Korean imports earlier this year.
The Korean auto giant is catching a break after the US and South Korea signed a new trade deal that lowered the tariff rate to 15%.
A notice posted on the Federal Register on Thursday confirmed the rate cut and other adjustments under the new deal.
Hyundai took a 1.8 trillion won ($1.2 billion) hit from the added tariffs in the third quarter, up from just 828 billion won ($565 million) in Q3 2024.
Although it’s a lower rate, bringing it in line with Japan, which announced a similar deal in September, Hyundai will still have to pay billions in extra costs.
“Fifteen percent is still 15%,” Randy Parker, Hyundai North America CEO, told CNBC during an interview this week.
Parker said the tariffs will be a challenge, but Hyundai is aiming for a sixth consecutive record year of US retail sales in 2026.
Hyundai Motor, including Kia and Genesis, is expected to import nearly 1 million vehicles into the US this year, or about 40% of its sales. By 2030, Hyundai aims to have more than 80% of the cars it sells in the US manufactured locally.
Through November, Hyundai has sold nearly 823,000 vehicles in the US, up 8% from the same period in 2024, putting it on pace for its fifth consecutive annual retail sales record. Parker said Hyundai is “on a record pace and fully expect to go ‘5 for 5 in 2025.’”
To offset the loss of the $7,500 federal tax credit, Hyundai has been offering some of the largest discounts on electric vehicles.
The IONIQ 5, which has consistently been a top-selling EV in the US, is among the most affordable options with leases starting at just $189 a month.
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