Hyundai Motor Company President José Muñoz predicts that car prices in the United States will remain relatively stable despite the imposition of tariffs on imported vehicles.
During an interview with Bloomberg, Muñoz stated that, ultimately, the market will determine prices and that he does not anticipate a dramatic price increase overnight. These remarks refute industry concerns and consumer worries that President Donald Trump’s tariffs could lead to a sharp rise in U.S. car prices this year.
Muñoz projected that the cost burden from tariffs might disproportionately impact the premium vehicle segment. Since customers buying high-end models are less affected by price increases, the company could absorb short-term profitability declines in the budget vehicle market.
Previously, U.S. consulting firm Anderson Economic Group analyzed that Trump’s tariffs could increase prices for budget vehicles by 2,500 USD and luxury vehicles by up to 20,000 USD.
Muñoz explained that they do not anticipate entry-level prices for each model to rise by 3,000 USD to 4,000 USD, noting that consumers are highly price-sensitive and such steep increases could discourage them from making purchases.
Furthermore, since Hyundai announced it would not raise prices in the U.S. for the next two months, he revealed that sales performance has been remarkably strong.
While Muñoz did not comment on what might happen after this marketing program ends, he indicated that Hyundai has no plans to discontinue any models or significantly raise prices. He suggested that auto parts suppliers would bear a greater burden from the tariffs and predicted industry consolidation in the parts sector.
However, in a separate interview with Bloomberg Television, Muñoz stated that if there is an opportunity to reduce incentives or raise prices, they would consider it.
Regarding the imposition of auto tariffs despite Hyundai’s recent announcement of a 21 billion USD investment plan in the U.S., Muñoz emphasized that the company is not driven by incentives or tariffs, stressing that the U.S. remains their most crucial market.
