South Korean automakers received a pretty big shot in the arm as a trade agreement was reached with the United States. The trade pact, which lasts for 15 years, took nine months to negotiate. With the new agreement, tariffs will be immediately lifted on cars with engine displacements of 3-liters or less. Cars with displacements greater than 3.0L will have to wait three years, and trucks will have to wait 10 years before the tariff is lifted. As expected, Hyundai stock shot up 3.3% on the news, and Kia saw an increase of 5.5%.
For their part, in three years the South Korean government is levying a flat tax of five-percent on all vehicles, domestic or imported.
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