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Hyundai, global automakers increase vehicle prices in U.S. amid tariffs

Published: 25 Aug. 2025, 17:54 Updated: 25 Aug. 2025, 18:44

In this aerial view, vehicles are displayed for sale on a lot at the Audi South Austin dealership on May 16 in Austin, Texas. [GETTY IMAGES/YONHAP]

Global automakers, including Korea’s Hyundai Motor and Kia, are raising sticker prices in the United States after the Donald Trump administration began imposing 25 percent tariffs on imported vehicles in April.

Audi of America increased list prices across 19 models for the 2026 model year on Thursday, with hikes ranging from $800 to $4,700 compared to 2025, Automotive News reported on Friday.

Audi's Q4 e-tron, a compact electric SUV, rose $800, or 1.6 percent, to $51,895. The A3 compact sedan climbed $1,900, or 4.8 percent, to $41,395. The Q7 and Q8 SUVs rose by $1,500 and $1,200, respectively. The steepest increase was for the high-performance S8, up $4,700, or 3.7 percent, to start at $131,295.

Audi builds the Q5 in Mexico but produces its other models in Europe for export to the United States.

The United States currently levies a 27.5 percent tariff on vehicles imported from the European Union. A U.S.-EU trade deal reached late last month could cut that rate to 15 percent as early as the fourth quarter, but companies are still passing on costs.

Audi does not operate a U.S. plant, meaning its exposure to tariffs will likely continue. Automotive News said Audi implemented “hefty price increases […] as the German luxury brand grapples with tariffs.”

Japanese carmakers have also moved. Toyota increased prices by an average of $270 starting July 1. Mitsubishi raised prices by $525 to $735, while Subaru increased prices by $750 to $2,055 beginning in June.

Ford lifted prices on Mexico-made models such as the Mustang Mach-E and Bronco by $2,000 in May.

Export-bound cars are lined up at Pyeongtaek in Gyeonggi on Aug. 25. [NEWS1]

Hyundai and Kia had frozen U.S. prices after tariffs took effect in April, but have now raised prices slightly on 2026 models. Hyundai Motor America unveiled 11 refreshed models in July, four of which received higher list prices.

The Sonata midsize sedan, imported from Korea, rose by $400, or 1.5 percent, to $27,300. The Santa Cruz compact pickup, built in Alabama, rose by $795, or 2.6 percent, to $29,500. The Tucson went up by $495, or 1.7 percent, and the Santa Fe increased by $500, or 1.5 percent.

In July, Seoul and Washington agreed to lower U.S. tariffs on Korean cars and auto parts from the threatened 25 percent to 15 percent as part of a last-minute trade arrangement.

Hyundai and Kia's price hikes remain below last year’s U.S. consumer inflation rate of 2.9 percent. News outlet Axios has projected that vehicle prices will rise by 6.3 percent next year.

Kwon Yong-joo, professor of automotive and transportation design at Kookmin University, said Hyundai and Kia appear to be prioritizing market share over margins. “By keeping increases lower than competitors, Hyundai Motor and Kia are accepting thinner profits in order to maintain or slightly expand market share,” Kwon said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM HYO-SEONG [[email protected]]