In Reaction To The New US Tariffs, Hyundai Will Not Increase Prices.

Hyundai CEO Jose Munoz has promised that the company “will not raise prices” and will instead “absorb” the new 25 percent US import tariffs that have taken effect.

Speaking at the Seoul Motor Show, Munoz confirmed that while the brand is “still assessing” the situation, it will not affect customers. The US is a “very, very important market” for the brand, Munoz said. Last year, 20% of the 4.14 million sales were made in the United States.

“We saw the announcement. There were no surprises. We’re not looking at it in the short term but in the long term.” He added, “We have to offer a competitive product. We’re not going to increase prices.”

The Korean automaker currently imports about half of the cars it sells in the U.S. The Tucson, its best-selling model in the U.S., is built for the American market in Alabama, U.S. That plant also produces the Elantra, Sonata, Santa Fe, and Santa Cruz models.

Hyundai previously announced a $21 billion investment in U.S. operations to enhance vehicle production, including the construction of a new steel plant, as part of a broader strategy to expand global production.

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