Hyundai Spent $21B In America And Might Still Hike Prices Anyway
Analysts expect that the new tariffs will add approximately $3,000 to the price of US-made cars, and up to $6,000 on cars made in Mexico and Canada
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by Brad Anderson
Hyundai warned dealers vehicle prices may increase on units delivered after April 2.
Estimates suggest that 25% tariffs will add at least $3,000 to the price of new vehicles.
Hyundai’s $21B investment in U.S. production may not shield buyers from rising prices.
The ripple effects of trade policy are hitting the auto industry once again, and this time Hyundai is sounding the alarm. President Donald Trump’s new tariffs on imported goods are expected to trigger price hikes across several sectors, and Hyundai is already warning US dealers to prepare. This comes even as the company recently committed an additional $21 billion to expanding its operations in the United States.
In a note issued to dealers, Hyundai and Genesis Motor North America chief executive Randy Parker acknowledged that “tariffs are not easy,” adding that “current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after April 2.”
Read: Trump “Couldn’t Care Less” If Automakers Raise Prices Over Tariffs
Parker did not provide any indication as to how significant the automaker’s price adjustments might be. However, as is so often the case, it will be lower-income earners who feel the sting of any price hikes the most, and they come at a time when the average transaction prices of new cars in the US are already near record highs.
As reported by USA Today, Cox Automotive believes that the recent 25% tariffs on automotive imports will add approximately $3,000 to the price of new US-made vehicles, as well as up to $6,000 on vehicles manufactured in Mexico and Canada.
That’s an especially troubling scenario for Hyundai customers, since the Korean automaker has made a point of investing heavily in local production. Its sprawling EV and hybrid complex in Georgia is a centerpiece of that effort. If Hyundai, with its extensive U.S. manufacturing footprint, still needs to raise prices, foreign carmakers with a lighter presence in the States could be forced into even higher prices adjustments.
Parker emphasized that Hyundai is “fortunate that we do not depend heavily on imports from Mexico and Canada, and we have been sure footed in our U.S. investments.” Still, the company appears to be hedging its bets.
Meanwhile, President Trump remains unbothered. Speaking last week, he reiterated that he doesn’t care if foreign automakers raise prices, believing that higher sticker costs will push consumers toward American-made vehicles.
