Finance
Hyundai warns US dealers of possible price hikes amid 25% tariffs
Published by Global Banking & Finance Review®
Posted on March 31, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 31, 2025
2 min readLast updated: January 24, 2026
Hyundai warns US dealers of possible price hikes due to 25% tariffs on imported vehicles, potentially raising costs significantly.
By Kalea Hall and David Shepardson
DETROIT (Reuters) -South Korean automaker Hyundai warned U.S. dealers it is evaluating its pricing strategy in the face of forthcoming 25% tariffs on imported vehicles and parts announced by President Donald Trump.
Randy Parker, chief executive officer of Hyundai and Genesis Motor North America, told dealers in a note that "current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after April 2."
Analysts expect automakers will have to significantly hike vehicle prices if the new tariffs remain in place for an extended period, leaving consumers to pay more for vehicles that already have price tags averaging near $50,000.
Cox Automotive estimates that 25% tariffs will add $3,000 to the cost of a U.S.-made vehicle and $6,000 to vehicles made in Canada or Mexico.
"Tariffs are not easy," Parker told dealers.
Parker also said 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."
Hyundai announced a $21 billion investment in the United States with the president at the White House on March 24, two days before Trump announced 25% auto tariffs that are set to go into effect this week.
In a Saturday interview with NBC News, Trump said that he "couldn't care less" if automakers hike prices, "because if the prices on foreign cars go up, they're going to buy American cars."
(Reporting by Kalea Hall in Detroit and David Shepardson in Washington; Editing by Sandra Maler)
Hyundai warned U.S. dealers that it is evaluating its pricing strategy due to forthcoming 25% tariffs on imported vehicles and parts.
Cox Automotive estimates that 25% tariffs will add $3,000 to the cost of a U.S.-made vehicle and $6,000 to vehicles made in Canada or Mexico.
Randy Parker stated that 'current vehicle pricing is not guaranteed and may be subject to change for units wholesale.'
Parker mentioned that Hyundai is fortunate not to depend heavily on imports from Mexico and Canada, emphasizing their strong U.S. investments.
In an interview, Trump said he 'couldn't care less' if automakers hike prices, suggesting that higher prices on foreign cars would lead consumers to buy American cars.
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