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Trump’s South Korea tariff cuts are major boost for Hyundai and GM

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Trump’s South Korea tariff cuts are major boost for Hyundai and GM


American flags flutter outside a Hyundai automobile dealership in Irvine, California, U.S., March 27, 2025. 

Mike Blake | Reuters

DETROIT — Hyundai Motor and General Motors are set to be two of the greatest beneficiaries of lower U.S. tariffs on imports, including vehicles, from South Korea.

The South Korean-based automaker is the largest U.S. importer of new vehicles from the country, followed by GM. Both automakers have paid billions of dollars in levies so far this year after President Donald Trump placed 25% tariffs on imported vehicles from South Korea and other countries in the spring.

The Trump administration this past week confirmed plans to lower tariffs on certain products, including vehicles, to 15% from South Korea. A notice about the implementation of the trade deal was posted Wednesday on the Federal Register. Other countries such as Japan and the United Kingdom also have negotiated lower tariff rates with the Trump administration.

Prior to the reduction, Hyundai reported U.S. tariffs costed the company 1.8 trillion won ($1.2 billion) in the third quarter, up from 828 billion won ($565 million) in the previous quarter. GM most recently said its tariff impacts, largely from South Korea and Mexico, were expected to be between $3.5 billion and $4.5 billion in 2025.

GM CFO Paul Jacobson said Wednesday that the automaker initially expected tariffs on South Korean imports to cost $2 billion but that the company has been able to offset many of those costs. He said GM expects the levies to cost closer to $1 billion or less in 2026.

“We do think that is going to be a tailwind next year, just not as much as the whole 50% because the ultimate tariff bill that we’re going to pay this year for Korea was going to be a lot lower than the $2 billion from the stuff that we’ve been working on,” Jacobson said during a UBS conference.

The U.S. tariff announcement comes after South Korea officially introduced legislation in its parliament aiming to fulfill its promise to invest $350 billion for the U.S. over several years.

Hyundai Motor Group Executive Chair Euisun Chung delivers remarks, as U.S. President Donald Trump, U.S. House of Representatives Speaker Mike Johnson (R-LA) and Governor of Louisiana Jeff Landry stand, in the Roosevelt Room at the White House, in Washington, D.C., U.S., March 24, 2025. 

Carlos Barria | Reuters

“Korea’s commitment to American investment strengthens our economic partnership and domestic jobs and industry. We are also grateful for the deep trust between our two nations,” U.S. Commerce Secretary Howard Lutnick said in a statement posted Monday on X.

Hyundai North America CEO Randy Parker said the tariffs are still challenging but better than 25% as the automaker aims for a sixth-consecutive year of record U.S. retail sales in 2026.

“Fifteen percent is still 15%,” he told CNBC during a phone interview Tuesday. “Getting to 15% is a great milestone. It’s been quite the journey reaching this agreement, which has been, I would say, quite extensive.”

Hyundai, including its Kia subsidiary that operates separately in the U.S., has significantly increased its sales and operations in the U.S. in recent years. But the automaker continues to import the majority of its vehicles — estimated to be nearly 1 million units this year — from South Korea.

GlobalData estimates more than 1.37 million vehicles, or about 8.6% of the U.S. sales this year, will be vehicles that were imported from South Korea — making the country the largest exporter of American-sold vehicles aside from Mexico.

Hyundai is expected to import more than 951,000 vehicles in 2025, according to GlobalData. That includes more than 369,000 for Kia and 582,000 for Hyundai and its luxury Genesis brand.

Hyundai aims to have more than 80% of its U.S. vehicle sales be produced locally by 2030, the company said this year. That compares with roughly 40% currently. 

Despite the tariffs, GM is estimated to import nearly 422,000 vehicles from South Korea this year to the U.S., according to GlobalData. That would be a 3.6% increase compared with record imports of more than 407,000 units last year.

GM has increasingly used South Korean plants to produce popular entry-level crossovers for Chevrolet and Buick. Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.

GM, in an emailed statement, said the company “appreciates that negotiators have finalized an agreement on trade between the US and South Korea.”

“GM’s long-standing Korea operations produce high-quality, affordable crossovers that complement our U.S. vehicles and domestic production, which will soon rise to 2 million units. We will be monitoring and reviewing the details,” GM said.

GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea. The company has touted the vehicles as being a pinnacle for the automaker’s profitable growth in lower-margin, entry-level vehicles.

Detainees are made to stand against a bus before being handcuffed, during a raid by federal agents where about 300 South Koreans were among 475 people arrested at the site of a $4.3 billion project by Hyundai Motor and LG Energy Solution to build batteries for electric cars in Ellabell, Georgia, U.S. September 4, 2025 in a still image taken from a video.

U.s. Immigration And Customs Enf | Via Reuters

The new U.S.-South Korea trade deal comes months after a period of tension between the two countries following an immigration raid at a battery plant jointly owned by Hyundai and LG Energy Solution in Georgia.

About 475 workers, including more than 300 South Koreans, were arrested in the Sept. 4 raid at the plant in Ellabell, Georgia, according to U.S. immigration officials. 



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Gadkari urges shift to 100% ethanol blending, flags energy security and import risks – The Times of India

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Gadkari urges shift to 100% ethanol blending, flags energy security and import risks – The Times of India


Road transport and highways minister Nitin Gadkari

India should aim for 100 per cent ethanol blending in the near future to strengthen energy self-reliance, road transport and highways minister Nitin Gadkari said on Tuesday. He said that vulnerabilities in oil supplies due to the ongoing crisis in West Asia have made it essential for the country to reduce dependence on imports.Speaking at the Indian Federation of Green Energy’s Green Transport Conclave, Gadkari said, “In the near future, India should aspire to achieve 100 per cent ethanol blending… Today, we are facing an energy crisis due to the war in West Asia, so it is necessary for us to become self-reliant in the energy sector,” as quoted by PTI.India currently allows vehicles to run on E20 petrol, which contains 20 per cent ethanol, with minor engine modifications to avoid corrosion and related issues. In 2023, PM Modi launched petrol blended with 20 per cent ethanol. Countries such as Brazil have already achieved 100 per cent ethanol blending.Gadkari noted that India imports 87 per cent of its oil requirements, adding, “We import fossil fuels worth Rs 22 lakh crore, which is also causing pollution… so we need to work on increasing production of alternative fuel and bio-fuel.”On future energy solutions, he stressed the importance of green hydrogen but pointed out challenges in cost and transport. “Transport of hydrogen fuel is a problem. Also, we need to produce 1 kg of hydrogen at $1 dollar, to make India an exporter of energy,” he said, adding that hydrogen production from waste should be explored.The minister also emphasised the role of a circular economy in generating employment opportunities. While calling for reduced reliance on petrol and diesel vehicles, he clarified, “But we can not force people to stop buying petrol and diesel vehicles.”Addressing concerns about E20 fuel, Gadkari said the petroleum sector is lobbying against the move. He also urged automobile manufacturers to prioritise quality over cost to expand into new markets.Last year, Gadkari dismissed criticism against E20 (ethanol-blended petrol), saying a “paid” social media campaign is being run to “target me politically.” He said Society of Indian Automobile Manufacturers and Automotive Research Association of India have shared their findings on ethanol blending in petrol. He added that India’s ethanol programme has benefited farmers, noting that ethanol made from maize has helped them get better prices and led to gains of Rs 45,000 crore.



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Spike in petrol thefts after Iran war pushed up fuel prices

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Spike in petrol thefts after Iran war pushed up fuel prices



One petrol retailer says he is experiencing about five drive-offs a week at each forecourt, costing him thousands.



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Billions to be paid! US starts refund process for Trump tariffs: Can Indian exporters claim? – The Times of India

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Billions to be paid! US starts refund process for Trump tariffs: Can Indian exporters claim? – The Times of India


To receive repayments, importers in the US are required to submit claims which include shipment details, applicable tariff classifications. (AI image)

The US government has rolled out a system to facilitate refunds of over $166 billion from tariffs introduced by Donald Trump and later invalidated by the US Supreme Court. In February, the court struck down a broad set of reciprocal tariffs, delivering a significant setback to a central pillar of Trump’s economic agenda and paving the way for repayments.On Monday, US Customs and Border Protection announced that the first phase of its refund-processing platform is now operational, allowing importers and customs brokers to begin filing claims to recover the duties they had paid.The agency had earlier estimated in March that more than 330,000 importers may qualify for reimbursements on duties or deposits linked to over 53 million shipments. In its initial rollout, the platform covers about $127 billion in duty payments eligible for electronic refunds.

Tariff refunds What US Customs and Border Protection has said

The process to return reciprocal tariff payments starts on April 20 through a newly launched online platform, CAPE (Consolidated Administration and Processing of Entries), operated by US Customs and Border Protection.This move follows a February 20, 2026 judgment by the US Supreme Court, which ruled that tariffs introduced by Donald Trump were unlawful. The court found that these duties had been imposed under the International Emergency Economic Powers Act without adequate legal backing.Also Read | Iran has closed Strait of Hormuz completely: What does this mean for India’s crude oil, LPG, LNG supplies?The tariffs impacted a wide range of exports from countries including India. To receive repayments, importers in the US are required to submit claims which include shipment details, applicable tariff classifications and proof of payment. Once approved, these refunds along with interest are expected to be processed within 60 to 90 days. Eligibility is limited to those who originally paid the tariffs, primarily US importers and businesses.The total amount to be refunded is estimated at around $166 billion, with nearly $12 billion tied to Indian goods.The tariff structure began at 10% on April 2, 2025, before escalating quickly. Duties on Indian goods increased to 25% by August 7, 2025, and further to 50% by August 28, remaining at that level until early February 2026. On February 6, 2026, rates were lowered to 18% following negotiations. However, the Supreme Court’s ruling later that month nullified the entire regime, effectively rendering the tariffs void and paving the way for refunds.

What it means for India

Exporters and end consumers are not permitted to file claims directly, although some companies, such as FedEx, may opt to pass on the refunded amounts at their discretion.According to Global Trade Research Initiative (GTRI), around 53% of India’s shipments to the US, which largely comprises textiles and apparel, were subject to higher tariffs. This makes them the largest contributors to the refund pool. Of the nearly $12 billion tied to Indian exports, textiles and apparel are estimated to account for around $4 billion, followed by engineering goods with a similar share and chemicals contributing about $2 billion, while other sectors make up the remainder.However, what is important to understand is that these refunds will not flow directly to Indian exporters. The payments are meant only for US importers who bore the tariff burden.Also Read | Explained: On way to 4th largest, how India slipped to 6th rank & what it means for 3rd largest economy dream“Payments go only to US importers, and exporters have no legal right to claim them. Indian exporters, therefore, have no direct legal route to claim refunds,” explains Ajay Srivastava, founder of GTRI.Hence, any potential recovery of these refunds will depend on commercial discussions. Exporters will need to actively engage with their US counterparts to negotiate a share of the refunded duties, particularly in cases where earlier pricing factored in tariff costs. GTRI explains that this can be done by reopening contracts, adding rebate-sharing clauses, asking for price revisions or credit notes, and using invoices and tariff data to show how costs were absorbed. “Exporters with stronger bargaining power, especially in textiles and engineering goods, may secure better terms in future orders,” the think tank says.Industry bodies such as the Apparel Export Promotion Council, Engineering Export Promotion Council of India and Chemexcil can also assist exporters with guidance on contract renegotiation and sector-specific approaches, it adds.



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