SEOUL – Hyundai Motor of South Korea is restructuring its production strategy in response to the global trade war triggered by import tariff policies under the administration of Donald Trump.

In an effort to mitigate the risks posed by these tariffs, Hyundai has relocated part of its production of Tucson crossover vehicles from Mexico to the United States (US).

“We expect the business landscape to remain challenging due to an intensified trade war and uncertain macroeconomic factors,” said a Hyundai spokesperson, as quoted by Reuters on Friday (25/4).

Hyundai and KIA, which together form the world’s third-largest car manufacturer, acknowledged their vulnerability to US tariff policies.

Hyundai is not alone – several other major South Korean companies are also considering relocating production in order to adapt to the new trade climate.

The decision comes amid threats of additional US tariffs on a range of sectors including automotive, pharmaceuticals, and semiconductors. Talks between the US and South Korea are ongoing, but no resolution has yet been reached. (EF/KR/ZH)