DETROIT: South Korean automaker Hyundai warned US dealers it is evaluating its pricing strategy in the face of forthcoming 25 per cent tariffs on imported vehicles and parts announced by President Donald Trump.
Randy Parker, chief executive officer of Hyundai and Genesis Motor North America, told dealers in a note that “current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after Apr 2”.
Analysts expect automakers will have to significantly hike vehicle prices if the new tariffs remain in place for an extended period, leaving consumers to pay more for vehicles that already have price tags averaging near US$50,000.
Cox Automotive estimates that 25 per cent tariffs will add US$3,000 to the cost of a US-made vehicle and US$6,000 to vehicles made in Canada or Mexico.
“Tariffs are not easy,” Parker told dealers.
Parker also said the automaker is “fortunate that we do not depend heavily on imports from Mexico and Canada, and we have been sure footed in our US investments.”
Hyundai announced a US$21 billion investment in the United States with the president at the White House on Mar 24, two days before Trump announced 25 per cent auto tariffs that are set to go into effect this week.
In a Saturday interview with NBC News, Trump said that he “couldn’t care less” if automakers hike prices “because if the prices on foreign cars go up, they’re going to buy American cars”.
