The Trump administration’s decision to impose immediate tariffs on steel and aluminum derivatives, including automobile parts, has sent shockwaves through the domestic automotive and logistics industries. If Trump’s proposed 25% tariff on finished vehicles becomes a reality, domestic logistics companies, including Hyundai Glovis, will face direct and indirect impacts.
According to industry sources reported on Friday, the Trump administration had decided to implement immediate tariffs on steel and aluminum derivatives on Wednesday. The tariffs now include 87 automotive parts, including bumpers, car body components, and suspensions, which were previously expected to be exempt. This expansion will likely amplify the impact on the automotive and logistics industries.
This move is also expected to affect Hyundai Glovis’s international logistics business. This key company transports Hyundai and Kia’s finished vehicles and parts abroad. The additional tariffs could drive up the prices of finished cars, potentially weakening Hyundai and Kia’s price competitiveness in the U.S. market. As a result, Hyundai Glovis may face inevitable setbacks in its maritime transport and automotive parts logistics revenue.
Moreover, if the automotive industry faces increased cost burdens due to higher tariffs, there may be greater pressure to reduce logistics expenses. As Hyundai Glovis is a key logistics partner for Hyundai and Kia, the group’s cost-cutting strategies could ripple effect on its logistics operations.
The global automotive maritime transport market is becoming increasingly uncertain. Hyundai Glovis’s fourth-quarter performance report from last year indicates that while global maritime transport grew by 5.5% in 2024, growth is projected to decelerate to 1.9% in 2025 and 1.2% in 2026.
Despite these concerns, Hyundai Glovis believes the tariff increase will not immediately impact its business. A company spokesperson stated, “There is little chance of a significant immediate impact from the parts tariff increase. We are closely monitoring the situation and remaining vigilant about future developments.”
Hyundai Glovis plans to use its various logistics hubs in the United States to mitigate potential risks. The company operates logistics centers near Hyundai’s Alabama and Kia’s Georgia factories to bolster local production support. Additionally, it has secured a vehicle storage area of 1.2 million square feet—equivalent to 17 soccer fields—at Port Tampa Bay, where it processes and ships over 70,000 vehicles annually.
Meanwhile, Hyundai Glovis records a high export ratio in the Americas region. In the fourth quarter of last year, logistics revenue from the Americas reached approximately 1.04 trillion KRW (about $962.5 million), representing 48.82% of total revenue. The company has consistently grown in this market, increasing for five consecutive quarters since the third quarter of 2023.
