Driving the news: Hyundai Motor's second-quarter profit fell 16% after U.S. tariffs cost the company $606 million, with the automaker warning of a bigger hit coming in the third quarter.
For context: Hyundai posted $2.64 billion in operating profit versus $3.07 billion last year, roughly meeting analyst expectations.
The company generates over 40% of its revenue in the U.S. and imports about two-thirds of vehicles sold there with affiliate Kia.
Why it matters: Hyundai's results show the mounting pressure on South Korea to cut a trade deal after Japan secured 15% tariffs this week. The company kept U.S. prices unchanged and absorbed tariff costs, but that strategy won't be sustainable long-term.
What we're watching: Hyundai's U.S. inventory is running low after front-loading shipments to avoid tariffs.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
