Hyundai’s 1% Price Hike on US EVs Signals Tariff Pressures for Electric Vehicle Owners

Hyundai Motor Co. is set to raise the price of all its US vehicles, including electric models, by 1% as early as next week, a move aimed at cushioning the impact of tariffs imposed by President Donald Trump. The South Korean automaker’s decision, reported by Bloomberg, comes as the industry braces for increased costs, potentially affecting EV owners and enthusiasts navigating an already competitive market.

Why Hyundai Is Raising EV Prices

Hyundai’s price adjustment targets newly built vehicles, leaving existing dealer stock unaffected. The 1% hike, while modest, could add several hundred dollars to the cost of each vehicle. For example, an electric Hyundai Ioniq 5, with a starting price around $42,000, might see an increase of approximately $420. This adjustment is a direct response to tariffs that have rattled the automotive sector, particularly for imported vehicles and parts. Hyundai, one of the largest importers of finished vehicles in the US, brought in about 1.1 million units last year, trailing only Toyota and General Motors, each with roughly 1.2 million imports.

The company is also considering raising shipping charges and fees for pre-installed options like floor mats and roof rails to avoid further increasing base prices.

“This period marks our regular annual pricing review, guided by market dynamics and consumer demand, independent of tariffs,” Hyundai stated, emphasizing its adaptability. “We will continue to adapt to shifts in supply and demand, and regulations, with a flexible pricing strategy and targeted incentive programs,” the company added, as quoted by Bloomberg.

Industry Trends: Tariffs Reshape EV Strategies

The tariff landscape under Trump’s administration has pushed automakers to rethink their pricing and production strategies. Hyundai had previously pledged to hold prices steady until June 2 for its namesake brand and upscale Genesis line, but the new tariffs have accelerated this change. Hyundai Chief Executive Officer José Muñoz told Bloomberg last month that he didn’t anticipate a sudden, large jump in prices but didn’t say what was planned for later in the year.

Other automakers are feeling the strain too. Ford Motor Co. has raised prices on three models imported from Mexico, while Subaru of America confirmed earlier this month that it has also increased prices on US vehicles. These adjustments highlight a broader trend: tariffs are adding thousands of dollars in costs to each vehicle, challenging the affordability of EVs at a time when adoption is critical.

What This Means for EV Owners

For EV enthusiasts, Hyundai’s price hike could make models like the Ioniq 5 and Ioniq 6 slightly less accessible, particularly for budget-conscious buyers. The additional costs for shipping and options might also nudge consumers toward base models, potentially limiting customization.

However, Hyundai’s investments in US production offer a silver lining. The company plans to localize more parts and vehicle production, with a $21 billion investment that includes a new steel plant in Louisiana and an expanded assembly plant in Savannah, Georgia. At full capacity, these facilities will allow Hyundai and Genesis to produce 70% of what they sell in the US domestically, reducing future tariff exposure.

Hyundai Chairman Chung Euisun’s recent visit to the White House to announce these plans was hailed by Trump, but it hasn’t led to significant tariff relief for the automaker or South Korea. As the EV market evolves, Hyundai’s strategy to balance price adjustments with increased US production could help maintain its competitive edge, even as tariffs continue to reshape the industry.

This move underscores the delicate balance automakers must strike between absorbing costs and passing them on to consumers, a challenge that will likely influence EV pricing and availability in the US for years to come.