Seoul (Reuters) -Shares of South Korean automakers Hyundai Motor and Kia Corp fell on Thursday after U.S. President Donald Trump said the U.S. will charge a 15% tariff on imports from South Korea, including autos, as part of a trade deal.
Hyundai Motor shares were down 2% and Kia Corp stock lost 3.3%.
The deal reduces U.S. tariffs on South Korean autos from 25% to 15%, the same rate as Japanese car imports.
Before Washington imposed 25% auto tariffs in April, there were zero tariffs on most South Korean auto imports under a bilateral trade deal, while there was a 2.5 percent tariff on Japanese auto imports.
The deal removes the 2.5% advantage in tariffs South Korean automakers had enjoyed over Japanese rivals under the Korea-U.S. free trade deal, analysts said.
(Reporting by Hyunjoo JinEditing by Ed Davies)
Brought to you by www.srnnews.com