The Trump administration’s tariffs have upturned the automotive panorama. Canada has skilled one of the crucial important impacts. After 60 years of automotive free commerce, imports on either side of the border now face 25% tariffs, following Canada’s implementation of a retaliatory tariff to match these imposed by america.
Whereas the Trump administration has reached tariff agreements with nations reminiscent of the UK, Japan, and South Korea, the state of affairs with Canada stays unresolved. And it’s inflicting one Hyundai car to pile up on the border.
Hyundai Santa Cruz Vehicles Are Piling Up At The Border
Hyundai has been discovering workarounds for sure automobiles. Hyundai Canada is now importing Tucson crossovers from Mexico reasonably than Alabama. And Canadian Santa Fe crossovers at the moment are coming from South Korea. Nevertheless, Hyundai has not been in a position to do the identical for the Santa Cruz pickup, which the model solely builds in America.
In response to Automotive Information, Hyundai has held Canada-bound Santa Cruz vans on the border, pending an settlement between the 2 nations. Hyundai didn’t reveal exactly what number of automobiles are at present in limbo. Hyundai offered simply 38 Santa Cruz pickups in June, working off present stock.
The Hyundai Santa Cruz Is Not The Solely Automobile Affected By The US And Canada Tariff Dispute
Canadian imports of all US automobiles have fallen sharply. Imports fell to $730 million in June, in comparison with a median of $1.3 billion monthly in 2024. And Canadian automotive imports from america fell under imports from Mexico for the primary time since a minimum of the early Nineteen Nineties.
Different manufacturers have been withholding automobiles certain for Canada in response to the tariff state of affairs. Mazda curtailed Canadian imports of the Alabama-built CX-50 crossover. Nissan has additionally paused manufacturing of the Pathfinder and Murano crossovers, in addition to the Frontier pickup, for Canada.
Will Hyundai Put In The Funding To Make The Santa Cruz Work?
The Hyundai Santa Cruz has not been a large vendor on both aspect of the border. Hyundai offered simply 32,033 Santa Cruz pickups within the US and a pair of,745 in Canada in 2024. Its closest rival, the compact Ford Maverick pickup, offered greater than 132,000 models in 2024. Santa Cruz gross sales in America by way of the primary half of 2025, at 14,221 models, represented a 21% decline year-over-year. That was after a 13% year-over-year decline in 2024.
Hyundai didn’t take dramatic steps to broaden the Santa Cruz’s enchantment when it refreshed the mannequin for 2025. A hybrid looks like a pure match. Hyundai primarily based the Santa Cruz on the Tucson compact crossover, which the model sells in each typical hybrid and plug-in hybrid types. However so far, Hyundai has caught with the two.5-liter inline-four and a turbocharged model as the one choices. Hyundai has additionally declined to hop on the road truck development with a full-on N model of the Santa Cruz.
The conundrum for Hyundai is price. Enhancing the Santa Cruz’s enchantment requires funding. However the truck’s low gross sales numbers incentivize Hyundai to speculate assets elsewhere. And enhancements to the Santa Cruz would increase the worth, which is already its important downside towards the Maverick. The Maverick’s base engine is 250 horsepower. Leveling up from 191 hp to 281 hp within the Santa Cruz raises the worth up above $40,000. And the Maverick’s 191 hp engine is a hybrid that may earn as much as 38 mpg mixed.
Supply: Automotive Information