Hyundai Suspends U.S.-Made Santa Cruz Exports to Canada for Fourth Consecutive Month

Santa Cruz Exports to Canada Halted Due to Tariff War
Hyundai Motor Company Shifts Sourcing to Korea and Mexico

It has been confirmed that exports of Hyundai Motor vehicles manufactured in the United States to Canada have been suspended due to Canada's retaliatory tariffs against the U.S. In the aftermath of the tariff war, Hyundai is readjusting its local vehicle sourcing strategy.

On August 14, Steve Flamand, CEO of Hyundai Motor Canada, told Automotive News, "We have temporarily suspended bringing the U.S.-made Santa Cruz pickup truck here because it would incur significant tariff costs." It is reported that shipments from the U.S. to Canada have been halted since April.

Hyundai Motor Company's pickup truck Santa Cruz. Hyundai Motor Company

On April 3, U.S. President Donald Trump imposed a 25% tariff on all imported vehicles worldwide. In response, on April 9, Canada imposed a 25% retaliatory tariff on U.S.-made vehicles, resulting in the suspension of Santa Cruz imports into Canada.

Hyundai exclusively produces the Santa Cruz at its Montgomery plant in Alabama, United States.

Hyundai Motor Canada currently holds some inventory of the Santa Cruz, but recent sales have dropped sharply.

According to the Automotive News Data Center, Hyundai sold only 38 small pickup trucks in Canada in June, a decrease of 82.7% compared to the same period last year. Year-to-date sales through last month totaled 1,460 units, down 6.8% from 2024.

Last year, a total of 2,574 Santa Cruz units were sold in Canada.

Hyundai is shifting its strategy for the Canadian market by sourcing vehicles previously produced in the U.S. from other regions. The Tucson crossover for the Canadian market is now being produced at the plant in Nuevo Le?n, Mexico, while the Santa Fe is being manufactured at the Ulsan plant in Korea. Previously, both models were sourced from the Alabama plant.

CEO Steve Flamand explained, "We have sufficient flexibility in our manufacturing facilities, so we can operate our business as usual. Tucson is now supplied from Korea and Mexico, and the rest of the portfolio, including Santa Fe and Genesis, is also supplied from Korea."