Hyundai is evaluating its pricing strategy as it braces for the tariffs on imported vehicles and parts announced by President Donald Trump. The automaker has warned U.S. dealers that vehicle prices may not remain stable, with potential increases for units wholesaled after April 2, according to Randy Parker, CEO of Hyundai and Genesis Motor North America.
Parker acknowledged the challenges ahead, telling dealers in a note that “tariffs are not easy.” Analysts expect prolonged tariffs will force automakers to significantly raise vehicle prices, further inflating costs that already average close to $50,000. Cox Automotive estimates the tariffs will add $3,000 to U.S.-made vehicles and $6,000 to those manufactured in Canada or Mexico.
Nevertheless, Parker reassured dealers that Hyundai is not heavily dependent on imports from Mexico and Canada. He also emphasized the company’s strategic U.S. investments, which include a $21 billion commitment announced at the White House on March 24—just two days before Trump confirmed the new tariffs.
The tariffs, set to take effect this week, are expected to reshape the competitive landscape for automakers operating in the U.S. Trump, dismissing concerns over rising prices, stated in an NBC News interview that higher costs on foreign-made vehicles would push consumers toward American brands.
An American flag flew outside a Hyundai dealership in Irvine, California, on March 27, symbolizing the broader challenges automakers face in an increasingly protectionist trade environment.
