Korea's auto, battery shares dip as Trump threatens to raise tariffs

Export-bound cars are lined up at Pyeongtaek Port in Gyeonggi on Dec. 1, 2025. [YONHAP]

 
Auto, battery and related shares opened sharply lower on Tuesday after U.S. President Donald Trump threatened to raise auto and “reciprocal” tariffs on Korean goods, accusing Korea of delaying the implementation of a bilateral trade deal.
 
Leading carmaker Hyundai Motor dropped 4.16 percent to 472,000 won ($325) in the first 5 minutes of trading, while its affiliate, Kia, dipped 5.19 percent.
 

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Top EV battery manufacturer LG Energy Solution fell 0.96 percent, while Samsung SDI and SK Innovation fell 3.75 percent and 1.84 percent, respectively.
 
Auto parts maker Hyundai Mobis fell 5.16 percent.
 
The U.S. president said he will raise tariffs on Korea across a range of products including cars, lumber and pharmaceuticals from the previously agreed upon 15 percent to 25 percent in a surprise social media post on Monday.  
 
“Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to,” Trump said. “We, of course, expect our Trading Partners to do the same.”
 
He said Korean lawmakers have been slow to enact the trade and investment agreement that was agreed upon by both countries last year. 
 
“President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Why hasn't the Korean Legislature approved it,” he wrote.
 
In a statement, the Blue House said it had not received any official notice from Washington of the decision to raise tariffs. The presidential office added it will convene an emergency meeting of policy chiefs and related ministries on Tuesday morning to respond to Trump’s announcement.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]