Jobaaj Stories
The U.S. auto industry is bracing for a major price hike, and Hyundai is at the center of it. With President Trump’s new tariffs hitting foreign-made auto parts, Hyundai and other carmakers are warning dealers and customers to expect higher vehicle prices starting April 2025.
Randy Parker, CEO of Hyundai and Genesis, has already alerted dealers that current vehicle pricing is not guaranteed after April 2. The reason? Tariffs on imported car parts will increase costs for manufacturers, which will pass down to customers.
🔥 Why Are Hyundai Prices Going Up?
🔹 New U.S. Tariffs on Auto Parts – Any part not made in the U.S. will be taxed, including touchscreens, engines, and key components.
🔹 Hyundai’s Global Supply Chain – Hyundai produces 43% of its cars in the U.S., but 57% are made in Korea and 140,000 in Mexico, making them vulnerable to tariffs.
🔹 Steel Price Uncertainty – Hyundai is building its own steel plant in the U.S., but it won’t fully shield the company from supply chain costs.
🔹 Ford, GM & Stellantis Also Impacted – Major automakers are scrambling to educate the White House about supply chain realities.
📉 What This Means for Hyundai Buyers
For U.S. customers, this trade war means:
✅ Higher Prices on Hyundai & Kia Models – Expect price increases on models like the Santa Fe, Kona, and upcoming Ioniq 9.
✅ Potential Dealer Price Adjustments – Hyundai dealers will likely increase prices to compensate for higher costs.
✅ Uncertainty for Future EV & Hybrid Models – Hyundai is exploring an EREV (Extended Range Electric Vehicle) engine in Mexico, but tariffs could delay or increase costs.
✅ Limited Alternatives – Other automakers, like Ford and GM, also rely on global suppliers, making an industry-wide price hike likely.
🚘 How Hyundai Plans to Adapt
Hyundai officials have stated that they will review business strategies to ensure long-term profitability. This could mean:
🔹 Further investment in U.S. plants – Hyundai’s new Meta plant in Georgia will build the Ioniq 5 and Ioniq 9, reducing some tariff exposure.
🔹 Potentially shifting production – Some models might move to U.S. manufacturing, but not everything can be onshored immediately.
🔹 Passing the cost to buyers – Price hikes are unavoidable, especially for models with imported parts.
What’s Next for Hyundai & the Auto Industry?
As tariffs shake up the market, could Hyundai accelerate U.S. manufacturing? Will dealers absorb some of the cost or pass it entirely to customers? One thing is clear—buying a Hyundai is about to get more expensive.
