Hyundai won’t raise prices in response to new US tariffs, says boss
Hyundai boss José Muñoz has promised to “not raise prices” and instead swallow new 25% US import tariffs that have come into effect.
Speaking at the Seoul motor show in Korea, the Spaniard confirmed that while the brand was “still assessing” the announcement, it would not impact customers.
The US is a “very, very important market” for the brand, Munoz said. Last year 20% of its 4.14m sales were made in the States.
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“We saw the announcement earlier this morning [in Korea]. It was not a surprise. We are not looking at it in the shorter term but instead in the longer term.”
He added: “We need to offer a competitive product. We are not going to increase prices.”
His comments follow the news late on 2 April that, despite threats of retaliation and inter-governmental talks, president Donald Trump would push through with a new 25% import tariff on all non-US made cars. An identical levy on car parts would follow in the future.
The car maker currently imports around half of the cars it sells in the US with most of its models in its home market of Korea, but has a number of other plants across the world.
The Tuscon, its best seller in the US, for example is made for the US market in Alabama. The plant also builds local market Elantra, Sonata, Santa Fe, and Santa Cruz models. Whilst Hyundai will avoid import taxes on these cars, levies on parts will likely impact the Korean firm.
Such is the importance of the market, the car maker last year announced plans to pump £16 billion into its US operations to increase its vehicle production in the country, including a new steel manufacturing plant. This was part of a wider effort to spread production globally.
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