Hyundai Auto Canada paused the importation of its compact van Santa Cruz, built in the United States, due to customs tariffs imposed last April.
Stuck on the border
Units for the Canadian market remain parked south of the border. “The cost of customs duties is too high, so we decided to suspend deliveries,” said Steve Flamand, CEO of Hyundai Canada.
A business war that continues
Since April 3, US President Donald Trump has imposed a 25 % surcharge on world automobile imports. In response, Ottawa established, on April 9, an equivalent price on vehicles from the United States.
A rights delivery program exists for manufacturers who assemble locally, but Hyundai does not manufacture vehicles in Canada. Result: the production of the Santa Cruz continues at the Montgomery, Alabama factory, but the vehicles remain stored.
Impact on sales
In 2024, Hyundai sold 2,574 Santa Cruz in Canada. But last June, sales dropped by 82.7 %, with only 38 units sold. In the first seven months of 2025, sales fell 6.8 % compared to last year, with 1,460 units.
Steve Flemish ensures, however, that the current inventory still makes it possible to meet the short -term demand. “We don’t want to let dealers and customers wait,” he says.
Reorganizations all over the industry
Hyundai is not alone in adjusting his plans. Mazda interrupted Canadian CX-50 production made in the United States, and Nissan has suspended the assembly of Pathfinder, Murano and Frontier for Canada.
To get around the prices, Hyundai has also changed the origin of other models. The Tucson intended in Canada is now assembled in Nuevo León, Mexico, and the Santa Fe now comes from the Ulsan factory, South Korea.
When is a return of the Santa Cruz?
Hyundai continues to monitor the evolution of the pricing conflict. If the conditions change, the deliveries could resume quickly. “We will make a decision soon,” confirmed Steve Flamand, who is still targeting a year 2025 record for the brand’s sales in Canada.
