US Tariffs Cost Korean Tyre Makers ₩115 Billion in Q3 Losses
South Korea’s top tyre manufacturers — Hankook Tire & Technology, Kumho Tire, and Nexen Tire — have collectively suffered an estimated ₩115 billion (US$83 million) in losses during the third quarter of 2025 due to 25% U.S. import tariffs. The figure amounts to nearly 21% of their combined operating profit forecast of ₩541.5 billion, marking a significant financial setback for the industry.
According to data from financial information provider FnGuide, the tariff, which took full effect earlier this year, has heavily impacted the earnings of Korean tyre exporters. Among the trio, Hankook Tire bore the brunt with ₩65.7 billion in tariff-related costs, while Kumho Tire and Nexen Tire each lost around ₩25 billion.
In the previous quarter, the damage was comparatively lower at ₩64 billion, as companies relied on pre-tariff inventories. However, the full impact is now visible in Q3 results, intensifying pressure on profitability.
Industry analysts suggest that hopes are rising for potential relief as U.S. President Donald Trump is set to visit Seoul from October 29 to 30. The visit could pave the way for a possible reduction in tariffs — from the current 25% to around 15%.
Meanwhile, Hankook Tire is fast-tracking Phase 2 construction of its Tennessee plant, aiming for completion by year-end to raise its U.S. production share from 25% to nearly 48%, thereby reducing exposure to tariffs. Kumho Tire is relying more on its Vietnam plant, which faces a lower 20% tariff, to serve the U.S. market. Nexen Tire, which lacks a North American facility, has increased regional prices by 10% and expanded its European operations to diversify its exposure.
Editor’s View:
The tariff hit underscores how trade policies can reshape global tyre dynamics. For Korean manufacturers, localising production is no longer optional — it’s a survival move. Hankook’s U.S. expansion is a signal of strategic adaptation, while Kumho and Nexen are adjusting through supply-chain agility and price recalibration. For the global tyre industry, the episode reinforces a growing trend: manufacturing resilience will increasingly depend on geographical diversification.
