U.S. Tariff Hike Slashes Hyundai's 2025 Net Profit by 22%

Hit by U.S. tariffs on South Korean-made vehicles and parts effective April 2025, Hyundai Motor reported a 22% year-over-year decline in net profit for 2025, which fell to KRW 10.365 trillion (approximately USD 7.2 billion). Net profit in the fourth quarter alone plunged 52% year-over-year to KRW 1.18 trillion—the weakest quarterly performance of the year. Despite a modest 6.3% increase in annual revenue, reaching KRW 186.254 trillion, and global sales remaining largely flat at 4.138 million units, the company incurred an additional cost of approximately KRW 4.1 trillion due to the tariffs. Sales of eco-friendly vehicles rose 27% year-over-year to 961,800 units, helping boost the average selling price per vehicle. Looking ahead to 2026, Hyundai forecasts a slight increase in global sales to 4.158 million units and revenue growth of 1–2%. However, growth in key markets such as North America and Europe is expected to remain limited, with the company continuing to face pressure from intensifying competition from Chinese automakers expanding overseas and ongoing uncertainty surrounding tariff policies.