Hyundai and Kia brace for Trump tariffs, Genesis may join them

Donald Trump’s re-election continues to send shockwaves through the auto industry as companies brace for devastating impacts, from crippling tariffs to the possible elimination of electric vehicle tax credits. While no one is sure what to expect, some automakers appear to be preparing for the worst-case scenario.

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Genesis may want to be among them, as the luxury brand only builds a handful of vehicles in the United States. The Electrified GV70 was the first Genesis produced in the United States and the first car built outside of South Korea. Shortly thereafter, starting with the 2024 model year, all U.S.-bound GV70s were built in Montgomery, Alabama.

More: Genesis to build gas-powered GV70 SUV and electric cars in U.S.

While this provides some cushion, the GV70 won’t be a savior if Trump raises tariffs and Genesis must rely heavily on U.S. production. That’s in stark contrast to rivals like BMW and Mercedes, both of which have massive plants in the United States. These models produce popular crossovers such as the X3, X4, X5, X6, X7 and XM as well as the GLE, GLE Coupe, GLS, EQE SUV and EQS SUV.

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Even within the Hyundai Motor Group, Genesis is an oddball because many Hyundai and Kia vehicles are built in the United States. According to the Korea Times, their mainstream brands are “responding to the risk of tariffs by increasing vehicle production in the United States,” but it won’t be easy for Genesis.

In addition to essentially having to start from scratch, the company also reportedly needs Korean union workers to sign on to a U.S. production agreement. It’s certainly a thorny issue, but the status quo could put Genesis and its vehicles at a significant disadvantage if tariffs rise. It goes without saying that Hyundai Motor Group has limited production capacity in the United States, so juggling three brands adds additional complexity.

Of course, it’s not entirely clear what will happen if Trump returns to the White House. However, it could be a tough and unpredictable four years for automakers.

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