Hyundai Rules Out U.S. Price Hike Despite New Tariffs

Hyundai Motor (OTC:HYMTF) has confirmed it will not raise vehicle prices in the U.S. market, despite the Biden administration's recent announcement of 25% tariffs on imported vehicles and parts. Speaking at a motor show in South Korea, Jose Munoz, co-CEO of Hyundai Motor, stated, “We have seen the tariff announcement and we are evaluating the impact. There are no plans to raise prices in the United States at this time.”

The announcement provides relief to U.S. consumers and dealers amid rising concerns that automakers would pass tariff-related costs down the line. Hyundai had previously informed its U.S. dealerships that pricing strategies were under review in light of the tariff plans.

Despite the reassuring stance, Hyundai Motor shares fell 1.5% in early Thursday trading, while its affiliate Kia Corp dropped 1.9%, slightly underperforming the broader South Korean stock market, which declined by 1.4%.

The potential 25% tariffs, introduced as part of the White House’s efforts to protect domestic manufacturing, have raised uncertainties for global automakers reliant on international supply chains. Hyundai’s decision not to adjust pricing—at least for now—aims to preserve competitiveness in its critical U.S. market.

Meanwhile, Hyundai also used the event to showcase the next-generation hydrogen-powered Nexo crossover, underscoring its continued push into sustainable mobility. The company’s strategy appears to focus on innovation and market stability in the face of policy shifts and global economic headwinds.

As trade tensions evolve, Hyundai’s pricing decision may influence other automakers navigating the tariff landscape while trying to maintain consumer trust and market share in the U.S.