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

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

Hyundai Motor [005380] shares rose on the 4th amidst expectations of a ripple effect from the US announcement of increased tariffs on European-made cars.

According to the Korea Exchange, Hyundai Motor closed at 539,000 won, up 1.51% from the previous trading day.

This is believed to be due to US President Donald Trump recently stating that he would increase tariffs on European-made cars from the current 15% to 25%.

On October 1 (local time), President Trump wrote on social media Truth Social, "Based on the fact that the EU (European Union) is not complying with the trade agreement we fully agreed upon, I am pleased to announce that I will be increasing tariffs imposed on the EU for passenger cars and trucks entering the United States next week."

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

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