Hyundai Warns of Potential Tariff Escalation Despite Supreme Court Ruling

Hyundai president urges swift passage of $350 billion U.S. investment package amid fears of increased sector-specific tariffs

Feb. 24, 2026 at 6:22am

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Hyundai Motor President Sung Kim has cautioned that the Trump administration may escalate tariff pressure on sectors like autos despite the Supreme Court's recent ruling against the president's universal tariffs. Kim urged the South Korean government to quickly pass legislation enabling a $350 billion U.S. investment package, warning that the return of 25% auto tariffs could significantly undermine the competitiveness of Korean automakers.

Why it matters

The potential for increased sector-specific tariffs, even after the Supreme Court's ruling against Trump's universal tariffs, poses a major threat to South Korean automakers like Hyundai and Kia, which have already suffered billions in losses from U.S. tariffs. This could further disrupt the industry's transition to electric vehicles and autonomous driving technologies.

The details

Hyundai and its affiliate Kia have already faced a combined 7.2 trillion won ($4.98 billion) financial hit from U.S. tariffs last year. Hyundai president Sung Kim warned that this could increase further if 25% tariffs are reinstated, at a time when the industry is undergoing major upheaval. Kim said the court ruling may even accelerate Trump's push for new tariffs on autos, semiconductors, and other sectors.

  • On February 24, 2026, Hyundai Motor President Sung Kim met with South Korean opposition lawmakers and business association officials.
  • In 2025, the U.S. and South Korea agreed to a trade deal that would lower U.S. tariffs on Korean goods from 25% to 15%.

The players

Sung Kim

The president of Hyundai Motor, South Korea's largest automaker.

Donald Trump

The former U.S. president who had threatened higher tariffs on goods from countries that "play games" with their existing U.S. trade agreements.

Hyundai Motor

South Korea's largest automaker, which has faced significant financial losses due to U.S. tariffs.

Kia

An affiliate of Hyundai Motor that has also been impacted by U.S. tariffs.

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What they’re saying

“I think that with the reciprocal tariffs now nullified, there may be increased pressure to raise sector-specific tariffs.”

— Sung Kim, President, Hyundai Motor

“Should the 25% tariffs be materialised, the competitiveness of Korean companies will inevitably weaken, at a time when the entire industry is undergoing upheaval, including the ongoing transition to electric vehicles and the acceleration of competition for autonomous driving.”

— Sung Kim, President, Hyundai Motor

What’s next

The South Korean government said it will stick to the trade deal reached last year with the U.S., which would lower tariffs from 25% to 15%. However, Hyundai's president warned that the company expects sector-specific tariffs, such as on autos, to remain in place despite the Supreme Court ruling.

The takeaway

This case highlights the ongoing trade tensions between the U.S. and South Korea, with Hyundai warning that even after the Supreme Court's ruling against Trump's universal tariffs, the automaker still faces the threat of increased sector-specific tariffs that could significantly undermine its competitiveness at a critical time of industry transformation.