So, here’s the thing about the whole Hyundai trade deal Trump situation. It was a massive, high-stakes game of chicken that basically reshaped how you buy a car in America today. If you’ve been looking at sticker prices on a new Santa Fe or a Kia EV9 lately and felt like your wallet was being personally attacked, you’re not alone.
It all started back in early 2025. President Trump came out swinging with a 25% "global auto tariff." He basically told every car company on the planet: "Build here or pay the piper." For a company like Hyundai, this was a code-red emergency. They sell a ton of cars in the U.S., but they also import a massive chunk of their lineup—including high-demand stuff like the Sonata and a bunch of their EVs—from South Korea.
The 15 Percent Compromise
By July 2025, things got real. While everyone was doom-scrolling about $60,000 Elantras, a deal was struck. It wasn't exactly what Hyundai wanted, but it kept the lights on. The U.S. and South Korea settled on a 15% import tariff.
Now, wait. 15% is still huge.
Before this, under the old KORUS FTA (Free Trade Agreement), most of these cars were coming in duty-free. Going from zero to 15% is a gut punch. But compared to the 25% Trump was threatening? It was a "win" in the way that getting a cast is a win compared to losing the whole leg.
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Why Hyundai is Building Huge Plants in Georgia
You’ve probably seen the headlines about the "Metaplant" in Georgia. That wasn't just for fun. Hyundai Chairperson Euisun Chung realized pretty quickly that the only way to dodge the Trump tariffs for good was to become an American company in all but name.
They pledged something like $21 billion in U.S. investments.
But here is where it gets kind of wild. Trump didn’t just want car factories. The deal that was finalized in late 2025 (and refined as recently as this week, January 2026) included a massive $350 billion commitment from South Korea. We're talking:
- $150 billion for shipbuilding (Trump’s "Make American Shipbuilding Great Again" or MASGA initiative).
- Billions more for semiconductors and AI.
- A promise to buy $100 billion in American liquefied natural gas (LNG).
Basically, Hyundai and the South Korean government bought their way into a lower tariff bracket.
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The "One Big Beautiful Bill" Factor
If you're wondering why Hyundai sales actually hit records in late 2025 despite these trade wars, it’s because of some weird side effects. Trump’s administration pushed through what they call the "One Big Beautiful Bill."
One of the perks? If you buy a vehicle made in America, you can now deduct your auto-loan interest.
Since Hyundai rushed to move production of the EV6, EV9, and the Ioniq series to U.S. soil (specifically their Georgia and Alabama plants), they actually benefited from this. It made the cars more affordable for the average person, even as the "pure" imports—the ones still coming from Korea—got slapped with that 15% tax.
What This Means for Your Wallet Right Now
Honestly, 2026 is looking a bit rocky. Hyundai’s U.S. CEO, Randy Parker, recently warned that "affordability is going to be the key."
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Here is the breakdown of the current reality:
- US-Built Models: If it’s a Hyundai or Kia made in Alabama or Georgia, you’re mostly safe from the trade war drama. You might even get that interest deduction.
- Korean Imports: If you want a model that isn't made here yet, expect that 15% tariff to be baked into the price. Hyundai has been "eating" some of that cost to keep sales up, but they can't do that forever.
- The EV Credit Shift: The old $7,500 federal tax credit is basically gone, replaced by these new manufacturing-linked deductions.
It’s a complicated mess.
One day, Trump is touring a Ford plant in Dearborn (like he did yesterday) calling the old trade pacts "irrelevant," and the next, the Commerce Department is "un-stacking" reciprocal rates to match the EU. It’s a lot to keep track of.
Actionable Steps for Car Buyers
If you're in the market for a Hyundai or Kia and want to navigate this trade deal mess, do this:
- Check the VIN: If it starts with a "5" or "1", it was made in the U.S. These are your best bets for avoiding "tariff-creep" in the sticker price.
- Ask about the "One Big Beautiful Bill" deductions: Don't just look at the MSRP. Talk to your tax person about whether the loan interest on that specific U.S.-made model is deductible for you.
- Watch the Inventory: Hyundai is currently trying to "front-load" imports to beat any further tariff hikes. There are deals to be had on 2025 models that are already on the lot before the 15% rate fully settled in.
The trade deal isn't just a political headline. It's the reason your next car might be more expensive—or, if you play it right, a surprisingly good deal thanks to the new domestic incentives.