Hyundai Invested $21 Billion in the U.S., Yet Prices Could Still Rise | Carscoops

      Analysts predict that the new tariffs will raise the price of US-manufactured cars by around $3,000 and by as much as $6,000 for vehicles produced in Mexico and Canada.

      Hyundai has alerted dealers that prices for vehicles delivered after April 2 may rise.

      Estimates indicate that a 25% tariff will increase the cost of new vehicles by at least $3,000.

      Hyundai’s $21 billion investment in U.S. production might not protect consumers from escalating prices.

      The repercussions of trade policy are impacting the auto industry again, with Hyundai raising concerns. President Donald Trump’s newly imposed tariffs on imported goods are anticipated to lead to price increases across multiple sectors, and Hyundai is already advising US dealers to be ready. This warning comes despite the company's recent pledge of an additional $21 billion to enhance its U.S. operations.

      In a communication to dealers, Hyundai and Genesis Motor North America CEO Randy Parker recognized that “tariffs are not easy,” mentioning that “current vehicle pricing is not guaranteed and may be subject to change for vehicles wholesaled post-April 2.”

      Parker did not specify the potential extent of the price changes. However, as is typically the case, lower-income consumers are likely to be the most adversely affected by any price increases, especially at a time when the average transaction prices for new cars in the US are already approaching record levels.

      According to USA Today, Cox Automotive estimates that the recent 25% tariffs on automotive imports will increase the cost of new US-made vehicles by roughly $3,000, and vehicles manufactured in Mexico and Canada by up to $6,000.

      This situation is particularly concerning for Hyundai customers, considering that the Korean automaker has significantly invested in local production. Its extensive EV and hybrid facility in Georgia is a key element of this strategy. If Hyundai, with its large U.S. manufacturing operations, requires price hikes, foreign manufacturers with a smaller presence in the U.S. might face even larger price increases.

      Parker noted that Hyundai is “fortunate that we do not rely heavily on imports from Mexico and Canada, and we have been assured in our U.S. investments.” Nonetheless, the company seems to be cautious.

      Meanwhile, President Trump appears unfazed. Speaking last week, he reaffirmed that he is indifferent to whether foreign automakers increase prices, asserting that higher costs will drive consumers toward American-made vehicles.