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Hyundai Motor rules out immediate price hikes in U.S. despite tariff scheme

Published: 03 Apr. 2025, 16:18 Updated: 03 Apr. 2025, 19:42

Hyundai Motor CEO Jose Munoz speaks during a townhall meeting in India on March 4. [HYUNDAI MOTOR]

Hyundai Motor has no plans to raise vehicle prices in the United States for now despite Washington's 25 percent duties on automobile imports under U.S. President Donald Trump's "America First" trade policy, the automaker's chief executive officer (CEO) said Thursday.

"I have seen the announcement early this morning. It has not been a surprise because it has been already explained," Hyundai Motor CEO Jose Munoz told reporters at the 2025 Seoul Mobility Show's media day held at KINTEX in Goyang, just northwest of Seoul.

Munoz added, "What I can tell you is that we are not going to increase prices right now."

He was responding to questions regarding Trump's announcement of new reciprocal tariffs on America's trading partners, including Korea. While automobiles were excluded from the scheme, they are subject to a separate 25-percent sectoral tariff measure, which went into effect earlier in the day.

"Our position in the market is to always be competitive. We have to offer to our customers competitive products with good design, good technology and good services," the CEO said, adding, "We will remain doing so."

America is a top auto export market for Korea. Auto shipments to the United States amounted to $34.7 billion in 2024, accounting for 49.1 percent of the country's overall car exports in the year. Hyundai Motor Group and GM Korea exported around 970,000 and 410,000 units to the United States, respectively, last year.

Amid Trump's tariff pressure, Hyundai Motor Group announced a plan last week to invest $21 billion in the United States through 2028.

Yonhap