After all, the consumer pays for it? Hyundai is said to be preparing to raise prices in the United States under Trump tariffs

Source: Cailianshe

Hyundai is preparing to raise the price of cars sold in the United States after June 2 in response to the Trump administration's car tariffs, according to media reports, citing people familiar with the matter.

The move will mark the first time the South Korean automaker has raised prices due to U.S. tariffs.

The United States' measures to impose a 25% tariff on imported cars officially came into effect on April 3, and the measures to impose a 25% tariff on auto parts will take effect on May 3. At the end of April, US President Trump signed an announcement allowing some compensation to auto manufacturers that import auto parts and assemble cars in the United States.

Hyundai had previously promised to freeze its U.S. selling prices by June 2, and said it would closely monitor the market and evaluate various options later.

In an internal message sent to some employees in recent days, the car company said it would "evaluate the timing of price hikes starting in June to minimize the impact of tariffs." The car company also said that production adjustments by region and model are already underway to cope with potential demand changes.

So far, Hyundai has been able to maintain price stability because there is sufficient inventory in the U.S. market and hopes that the South Korean government can negotiate tariff exemptions or adjustments before the deadline (June 2).

However, these expectations have faded in recent weeks as U.S. auto stocks have diminished and uncertainty surrounding trade talks have increased, especially as South Korea is scheduled to hold a presidential election on June 3. Analysts say any new negotiations could be delayed until the next administration appoints a new negotiation team.

Rising car prices may affect Hyundai's sales performance in its largest overseas market (US). Although Hyundai has multiple factories in the United States, a considerable number of hybrid and internal combustion engine vehicles are still exported from South Korea to the United States.

Hyundai is not the first automaker to raise prices in the United States as Trump's tariff measures put pressure on the automotive industry. Ford, a veteran American car company, Subaru, and Ferrari, an Italian car company, have all raised prices in the United States.

Some automakers have also issued warnings that they will take action, although they have not taken price increases.

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