Hyundai, the South Korean automaker, has issued a warning to its U.S. dealers regarding potential price increases on vehicles due to the impending 25% tariffs on imported cars and parts, as announced by former President Donald Trump.

In a recent communication to dealers, Randy Parker, CEO of Hyundai and Genesis Motor North America, explained that current vehicle prices may be subject to change for units wholesaled after April 2, 2025. The company is actively evaluating its pricing strategy in light of the new tariffs.

Industry analysts anticipate that if the 25% tariffs remain in place for a prolonged period, automakers will be forced to raise vehicle prices significantly. With U.S. vehicle prices already averaging nearly $50,000, consumers could face even higher costs.

Tariff Impact on Vehicle Prices

Cox Automotive projects that the 25% tariff will increase the cost of U.S.-made vehicles by approximately $3,000, while vehicles manufactured in Canada or Mexico could see price hikes of up to $6,000.

Parker acknowledged the difficulty of the situation, stating, “Tariffs are not easy.” However, he reassured dealers that Hyundai is less reliant on imports from Mexico and Canada, positioning the company well despite the new tariffs.

Hyundai’s U.S. Investment Strategy

In a positive development for Hyundai, the company had previously announced a significant $21 billion investment in the U.S. market during a meeting at the White House on March 24, 2025—just days before the tariff announcement.

President Trump addressed the matter during an NBC News interview on Saturday, stating that he “couldn’t care less” if car prices increase due to the tariffs, adding that consumers would simply shift to purchasing American-made vehicles.

As Hyundai adjusts to the evolving trade landscape, U.S. consumers and automotive dealers alike will need to brace for potential price fluctuations in the coming months.