Hyundai Motor reported a 15.8% decline in its second-quarter earnings following a 25% auto tariff imposed by the United States in April.

The South Korean carmaker’s operating profit fell to 3.6 trillion won (US$2.63 billion) for the period from April to June.

Despite the profit decline, Hyundai’s sales rose by 7.3% to 48.28 trillion won (US$37.1 billion) during the same timeframe.

This increase is attributed to strong performance in the North American market.

In response to the tariff, the company has focused on selling its existing US inventory.

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