Trump's Tariffs Hit, Hyundai CEO: Car Prices Will Rise but Not Skyrocket Overnight

Jose Munoz, CEO of Hyundai Motor Company, expects that despite the escalating global trade war pushing up costs, car prices will remain relatively stable in the coming months, as automakers aim to maintain market stability and attract customers to continue visiting dealer stores.

On Tuesday, April 15, local time, Munoz told the media in an interview, "I don't think prices will rise significantly overnight, the market will decide." His statement partially alleviated concerns among car buyers and industry insiders about Trump's tariffs.

It is understood that Munoz joined Hyundai in 2019 and was elected to the board of directors in 2023, becoming the company's first non-Korean executive, and later the first non-Korean CEO in Hyundai's history.

Earlier this month, the consulting firm Anderson Economic Group released a report, estimating that new tariffs could increase the cost per unit of low-end car models in the US by $2,500, while the increase for luxury imported cars could be as high as $20,000.

In response, Munoz pointed out that the cost pressure from tariffs may fall more on high-end models, as customers of these cars are less sensitive to price increases. This means that automakers may sacrifice some short-term profits of low-priced models to stabilize this market.

Munoz said, "I don't think the price of entry-level models will suddenly increase by $3,000 or $4,000, these customers are extremely price-sensitive. If you do this, they may not buy a car."

Hyundai Motor has also promised not to raise prices at least until June 2. Munoz added that this move has driven the company to achieve "very strong" sales in April, as customers wanted to place orders early before the market became chaotic.

Of course, Munoz also admitted that tariffs will definitely bring more pressure to parts suppliers. Although the company is discussing with suppliers how to share costs to reduce the burden, he said that there may be consolidation in the industry, and weaker manufacturers will face difficulties.

On Monday, US President Trump said in an interview in the Oval Office that he is studying the possibility of exempting tariffs on imported cars and parts to ease the pressure on car companies to reconfigure their supply chains.

Trump said, "I am considering some measures to help car companies, they are turning to use parts produced in Canada, Mexico, etc. They need to produce in the US, but they need some time."