Here's the Hyundai Pricing Strategy in the Wake of Trump Tariffs

Yahoo

07-04-2025

Hyundai will hold steady with its Manufacturer's Suggested Retail Price (MSRP) structure until June 2, as tariffs come into effect.
The automaker builds Santa Fe, Santa Cruz, Ioniq 5, and Ioniq 9 in the US, in addition to a part of Tucson output for North America.
Days ago the South Korean automaker officially opened Hyundai Motor Group Metaplant America in Ellabell, Georgia, that will produce Hyundai, Kia, and Genesis models.
As foreign automakers weighed options following the imposition of the Trump administration's 25% vehicle tariffs—and the announcement of additional reciprocal tariffs against individual countries—Hyundai sought to reassure its customer base.
The automaker said it would maintain its current Manufacturer's Suggested Retail Price (MSRP) structure between now and June 2 for customers who lease or buy any new Hyundai during this time period.
"We know consumers are uncertain about the potential for rising prices, and we want to provide them with some stability in the coming months," said José Muñoz, president and CEO of Hyundai Motor Company.
However, we should note that MSRPs are one thing and dealer prices for consumers are quite another, not to mention the prices of parts that are also bound to see drastic changes due to new tariffs rolling out in May. This holds true for any automaker that does not have direct sales.
Also, dealers of all brands typically have weeks or months worth of inventory on their lots—inventory that is not formally subject to tariffs, while it lasts. These vehicles should theoretically be insulated from tariffs, though it remains to be seen what happens as buyers descend on cars and trucks that were delivered weeks ago in search of pre-tariff pricing.
At the moment, Hyundai builds five vehicles in the US including the Santa Fe, Santa Cruz, and the Ioniq 5, while the Tucson is built in the US and in Mexico.
The Ioniq 9 electric SUV is entering production in the US as well this spring, though its price remains unannounced for now as assembly has just begun. Deliveries are expected to start in a few weeks.
Days ago Hyundai officially cut the ribbon on Hyundai Motor Group Metaplant America in Ellabell, Georgia, that began producing the Ioniq 5 last fall.
The Georgia plant was constructed in under two years, with the capacity to produce 300,000 vehicles annually in its early phases, while Hyundai Motor Manufacturing Alabama, on line since 2005, has an annual capacity near the 400,000-vehicle mark.
In addition, Hyundai recently made a $21 billion investment in the US over the next three years aimed at boosting manufacturing capabilities.
The models produced by Hyundai in the US are expected to be immune from direct import tariffs, though longer-term, second-order effects of the tariffs on raw materials and other components could certainly affect vehicle pricing for Hyundai and other brands in a matter of months or weeks.
"Our MSRP commitment is just one part of our multifaceted effort to provide great vehicles to American consumers, while also supporting hundreds of thousands of jobs and investing billions of dollars in the most important market for our company," Muñoz added.
Hyundai's sibling brand Kia currently produces a number of EVs in the US, including the EV6 and EV9. Kia also builds the Telluride in the US, as well as non-hybrid versions of the Sportage. The rest that are sold in the US are built in South Korea and Mexico.
Will the tariffs boost demand for domestic US brands in the longer term, or will demand for all vehicles be affected in the same manner? Please comment below.