[Featured Stock] Hyundai Motor, strong on US announcement of 'increase in tariffs on European cars'

[Featured Stock] Hyundai Motor, strong on US announcement of 'increase in tariffs on European cars'

Hyundai Motor [005380] is showing strength in early trading on the 4th, driven by expectations of a ripple effect from the US announcement of increased tariffs on European-made cars.

According to the Korea Exchange, as of 9:02 AM on this day, Hyundai Motor was trading at 538,000 won, up 1.32% from the previous trading day.

This is interpreted as the impact of US President Donald Trump recently stating that he would raise tariffs on European-made cars from the existing 15% to 25%.

On April 1st (local time), President Trump wrote on the social media platform Truth Social, "Based on the fact that the EU (European Union) is not adhering to the trade agreement we fully agreed upon, I am pleased to announce that I will be increasing tariffs on passenger cars and trucks coming into the United States from the EU next week."

Regarding this, Kim Chang-ho, a researcher at Korea Investment & Securities, noted that the current tariff rate on Korean-made cars is 15%, stating, "While it is difficult to expect a sharp increase in demand for Korean-made cars due to the relatively low absolute proportion of European-made cars, it is positive in terms of strengthening price competitiveness."

He added that European cars exported to the US have a high proportion of luxury brands, which "could serve as an opportunity to enhance price competitiveness, especially for luxury brands like (Hyundai Motor's) Genesis." He also stated, "High-profit, high-end models such as Palisade and Telluride are also highly likely to benefit from the increased tariffs on European cars."