DETROIT – Hyundai Motor and General Motors are poised to substantially benefit from reduced U.S. tariffs on vehicle imports from South Korea.

hyundai is the largest U.S. importer of vehicles from South Korea, followed by GM. Both companies have incurred billions of dollars in tariffs this year following President Trump’s implementation of a 25% tariff on imported vehicles from South Korea and othre nations in the spring.

The Trump governance recently confirmed plans to lower tariffs on certain products, including vehicles, from South Korea to 15%. A notice detailing the implementation of the trade deal was published on the Federal Register on Wednesday. Japan and the United Kingdom have also secured lower tariff rates with the trump administration.

before the reduction, Hyundai reported that U.S. tariffs cost the company 1.8 trillion won ($1.2 billion) in the third quarter, an increase from 828 billion won ($565 million) in the previous quarter. GM recently estimated its tariff impacts, primarily from South Korea and Mexico, would be between $3.5 billion and $4.5 billion in 2025.

GM CFO Paul Jacobson stated on Wednesday that the company initially anticipated $2 billion in tariffs on South Korean imports but has mitigated many of those costs. He projects the levies will 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 then the $2 billion from the stuff that we’ve been working on,” Jacobson said during a UBS conference.

The U.S. tariff announcement follows South Korea’s official introduction of legislation in its parliament to fulfill its commitment to invest $350 billion in the U.S.over several years.