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Investing.com-- Hyundai Motor (KS:005380) logged a drop in its third-quarter profit on Thursday, as high U.S. tariffs on automobile imports and parts weighed on the South Korean automaker’s margins.
Hyundai clocked an operating profit of 2.54 trillion won ($1.76 billion) for the three months ended September 30, down 29.2% from last year. But the figure met Reuters and Bloomberg estimates.
Q3 revenue rose 8.8% to 46.72 trillion won. But the company’s gross margin deteriorated to 17.7% in Q3 from 19.8% a year ago.
The automaker– which is the world’s third-largest by sales– said U.S. tariffs cost the company about 1.8 trillion won in Q3, more than twice the 828 billion won seen in the prior quarter.
This was chiefly due to Hyundai facing a 25% tariff on all auto exports to the U.S., which is its biggest market and accounts for 40% of its revenue.
But the South Korean automaker, along with its peers, will now see some relief on the tariff front, following a new trade deal between Seoul and Washington. Auto exports to the U.S. will now be subject to a lower, 15% tariff.