Hyundai Navigates Uncertain Terrain Amid Auto Tariff Challenges

Hyundai is reconsidering its pricing strategy due to upcoming 25% tariffs on imported vehicles and parts introduced by President Trump. Analysts predict significant price hikes for consumers if tariffs persist. Hyundai emphasizes its strategic U.S. investments and minimal reliance on Mexico and Canada imports.

South Korean car manufacturer Hyundai has alerted U.S. dealers to a potential overhaul of its pricing strategy owing to impending 25% tariffs on imported vehicles and parts, initiated by President Donald Trump. Hyundai's North American chief, Randy Parker, mentioned that current pricing might change for inventory wholesaled after April 2.

Experts predict that protracted tariffs would force automakers to substantially increase vehicle prices, thereby impacting consumers. Cox Automotive projects additional costs of $3,000 for vehicles made in the U.S. and $6,000 for those manufactured in Canada or Mexico.

Praising Hyundai's strategic foresight, Parker highlighted the company's limited reliance on imports from Mexico and Canada and underscored its U.S. investments. This perspective aligns with the $21 billion investment announcement made by Hyundai in the U.S., underscoring the company's commitment amid tariff challenges.

(With inputs from agencies.)