Hyundai Chief Warns the U.S.: Without Tariffs, Chinese Cars Will Upend the Market as in Europe

Hyundai Motor CEO Jose Munoz warned on Thursday that the United States risks facing a wave of Chinese car imports like the one that shook the European market if Washington does not keep tariffs and protective measures against Chinese manufacturers in place.

Speaking in an interview from San Jose, California, Munoz said Chinese manufacturers expanded rapidly in Europe, eroding the market share and profits of producers like Hyundai and Volkswagen. Chinese cars are offered 30–40% cheaper than rivals in markets like Italy, Spain, and France — even though the European Union has imposed additional tariffs on Chinese electric cars after finding unfair state subsidies.

“The United Kingdom… has become like China. All the best-selling brands are Chinese, because there are no barriers,” Munoz said, referring to the fact that London did not impose tariffs on Chinese imports. According to the data, more than 9% of cars sold in the EU in the first half of the year were Chinese brands, while in Britain 15% of new registrations were Chinese cars.

In the United States, imports of Chinese electric cars are practically blocked with tariffs of around 100%. President Donald Trump told Fox News last week that he would welcome Chinese car manufacturers — but only if they build factories on American soil.

Munoz’s warning joins those from Detroit: Ford CEO Jim Farley said in July that the company is preparing for a possible entry of Chinese manufacturers into the American market within the next 5–10 years.

At the same time, Hyundai announced it has delayed the launch of its Level 2++ assisted driving system to the end of 2029 — from the previous plan of end-2027 — while the company is collaborating with Nvidia on models expected in 2028.

Source: Reuters