U.S. Tariffs Hit Hyundai Hard

Hyundai Motor has launched a task force to respond to the U.S. tariffs, which are expected to significantly impact its sales and profitability.

The company will shift the production of some Tucson crossovers from Mexico to the United States to minimize the impact of tariffs.

Hyundai's annual earnings targets, including revenue growth of 3-4% and an operating profit margin of 7.0-8.0%, remain unchanged despite the challenges posed by U.S. tariffs.

The company's operating profit for the first quarter rose 2%, reaching 3.6 trillion won ($2.5 billion).

Hyundai's U.S. vehicle sales jumped 11% in the first quarter, driven by consumers rushing to buy vehicles ahead of the auto tariffs.

Hyundai and General Motors are in talks to cooperate on electric commercial vans and pickup trucks in North America.

South Korea and the U.S. have agreed to craft a trade package aimed at removing new U.S. tariffs before the pause on reciprocal tariffs is lifted in July.

Hyundai has asked for some exemptions from the U.S. tariffs, particularly in the auto sector, which is particularly vulnerable.

Hyundai's operating profit for the first quarter was boosted by a weaker South Korean won and a 40% surge in sales of hybrid vehicles.

The company's shift in production to the United States is a significant step towards reducing its dependence on Mexican production.