Hyundai Motor posted a decline in second-quarter operating profit on Thursday as U.S. tariffs on vehicles and parts started to weigh on its bottom line and warned of a bigger impact in the current quarter.

Earnings at South Korea’s largest carmaker fell in the second quarter, weighed by increased marketing costs and the impact of U.S. tariffs.

South Korean automakers are starting to see the impact of US tariffs on profits, and with no trade deal in place, things could get worse.