[Alpha Biz= Kim Jisun] SEOUL, October 27, 2025 — South Korea’s leading tire manufacturers — Hankook Tire & Technology, Kumho Tire, and Nexen Tire — are estimated to have incurred a combined ₩115 billion (US$83 million) in losses during the third quarter of 2025 due to U.S. import tariffs. The losses represent roughly 21% of the firms’ combined operating profit forecast of ₩541.5 billion for the quarter.
According to data from financial information provider FnGuide, the 25% U.S. tariff on Korean tire imports has significantly weighed on earnings since its full implementation earlier this year. By company, Hankook Tire faced an estimated ₩65.7 billion in tariff-related costs, while Kumho Tire and Nexen Tire incurred about ₩25 billion each.
In the previous quarter, the total impact was limited to ₩64 billion as companies relied on pre-tariff inventories. However, with the full effect now reflected in Q3, the financial strain has sharply increased.
Industry analysts note that the upcoming state visit of U.S. President Donald Trump to Seoul (October 29–30) has raised hopes among Korean automakers and tire producers that the current 25% tariff rate could be reduced to 15%, easing cost pressures.
In response to the prolonged trade burden, Hankook Tire is accelerating expansion of its Tennessee plant, aiming to complete Phase 2 construction by the end of this year. The move is expected to raise its U.S. production share from 25% to approximately 48%, mitigating tariff exposure.
Kumho Tire is leveraging its Vietnam plant (subject to a lower 20% tariff rate) to supply the U.S. market, while Nexen Tire — which lacks a North American production base — increased its regional sales prices by 10% in May and has been expanding European production to diversify its markets.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
