Hyundai tells dealers current vehicle prices 'not guaranteed'

Only 26% of Hyundai's vehicles sold in America undergo final assembly in the U.S.—the rest are subject to tariffs starting this week. (2 min. read)

Author

Anna del Villar
April 01, 2025

Hyundai $HYMTF ( ▼ 0.51% ) just warned U.S. dealers it is reevaluating prices ahead of Trump’s 25% tariffs on imported cars and parts, set to hit automakers on April 3—.

Driving the news: In a note to dealers, Hyundai and Genesis North America CEO Randy Parker, said, “current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after April 2,” Reuters reports.

Why it matters: Only 26% of Hyundai's vehicles sold in America undergo final assembly in the U.S., and the rest are subject to tariffs starting this week. This leaves Hyundai exposed to higher production costs that the company might not be able to absorb entirely, and could pass on by hiking prices.

What they're saying: “Tariffs are not easy,” Parker told dealers. Adding that the automaker 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.”

Between the lines: Hyundai recently announced a $21 billion investment in the U.S., including $6 billion earmarked for a new steel plant in Louisiana. But the fruits of these labors could take years to materialize.

  • In the meantime—Hyundai celebrated the grand opening of its new megaplant in Georgia, which will produce EVs and hybrids.

  • And vehicle capacity will increase from 300,000 vehicles to 500,000 annually.

“The good thing for us is that we started this journey before, so we didn’t know about tariffs or anything,” he said. “But we knew the U.S. is the most important market for us globally, and that we need to be localized," Hyundai Motor Co. CEO Jose Muñoz told reporters before the ceremony.

Bottom line: Analysts have been predicting tariff-induced, industry-wide price hikes for some time now, and with each new OEM announcement—that future grows more likely.

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