By James Ochoa Autoblog
In response to looming U.S. tariffs on imported automobiles, South Korean auto giant Hyundai announced in a statement released early on April 24 that it has launched what it calls a "task force" to guide its future strategy. The task force, which was formed this month, is said to help Hyundai minimize the impact of the Trump Administration's tariffs on its bottom line. It will be tasked with developing strategies and other plans to increase the amount of locally made parts used in the cars it sells in the U.S.
"We expect a challenging business outlook to continue due to intensifying trade wars and other various unpredictable macroeconomic factors," Hyundai said in a statement seen by Reuters.
The tariff task force was announced in the same statement that revealed Hyundai had shifted some of the production of its bestselling Tucson crossovers from Mexico to the United States. The compact SUV, which competes in a tough segment that includes the likes of Toyota's RAV4 and Honda's CR-V, is important for Hyundai. According to sales figures, Hyundai sold 23,631 units of the Tucson in the U.S. in March 2025, a 28% improvement from the 18,394 they sold the same month a year prior. In 2024, Hyundai sold 206,126 Tucsons in the United States in total.
The U.S. is an important sales hub for the Hyundai Motor Company as a whole. Over one-third of its global sales are from the United States, however, it is particularly vulnerable to the Trump administration's tariffs as most of its U.S. car sales are imported from abroad.
The Trump administration's tariffs have some automakers scrambling
The auto industry is still reeling from President Trump's 25% tariffs on all imported cars, which took effect on April 3. The heavy levies also apply to "key automobile parts" like engines, transmissions, and electrical components, which are set to take effect "no later than May 3." However, the Administration states that USMCA-compliant parts will remain tariff-free until customs officials can find a way to determine their non-US content. Despite this, Hyundai plans to honor the MSRP on its current model lineup until June 2 and actively find ways to manage prices afterwards.
"We know consumers are uncertain about the potential for rising prices, and we want to provide them with some stability in the coming months," Hyundai and Genesis brand president and CEO José Muñoz said in a statement on April 24. "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."
Final thoughts
On March 24, Hyundai Motor Group, the parent company of Hyundai, Kia, and Genesis, announced a bold $21 billion investment in U.S. manufacturing, including a $6 billion Louisiana steel mill operated by Hyundai Steel, and a commitment to boost U.S. production. Already, the Hyundai Group has a sizable American footprint, as it operates three vehicle factories in the States: Hyundai Motor Manufacturing Alabama in Montgomery, Alabama, Kia Autoland Georgia in West Point, Georgia, and the Hyundai Motor Group's Metaplant outside Savannah, Georgia.
However, many of the cars the Hyundai Group sells come from abroad, including Hyundai's Mexican plant and its giant plant in Ulsan, South Korea. According to Edmunds' data, Hyundai imports 52.3% of the vehicles it sells in the United States from South Korea, including those from the Hyundai, Kia, and Genesis brands. All of that could lead to some heavy losses for the automaker unless the task force manages to find some way around the tariffs.
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This story was originally published April 24, 2025 at 8:00 PM.
