Hyundai Motor will move production of one of its most popular models to the U.S.

León, Guanajuato. - Hyundai Motor will create a task force to address President Donald Trump's tariffs and move production of one of its most popular models to the United States to avoid high import taxes.

reported The New York Post.

The South Korean automaker announced that production of some of its Tucsons will move from Mexico to its Alabama plant and is considering moving production of some U.S.-bound vehicles from Seoul to other locations.

Its sales to U.S. dealers rose 1%, while its retail sales soared 11%, as buyers flocked to showrooms to buy cars ahead of the auto import tax.

A 25% tariff on auto parts is scheduled to go into effect on May 3.

Hyundai's tariff working group, created last month, will seek to minimize the impact of the taxes by working on ways to increase local sourcing of auto parts, according to the Post.

Hyundai and its subsidiary Kia , which together constitute the world's third-largest automotive group in terms of sales, generate approximately one-third of their global sales in the U.S. market, and imports account for approximately two-thirds of their U.S. auto sales, according to data from Korea Investment & Securities.

Last month, Hyundai pledged a massive $21 billion investment to increase production at its new Georgia factory, announcing the plan at the White House with Trump just days before he proposed the auto tariffs.

But production changes can't be made overnight, and in the meantime, tariffs could cost the company billions of dollars.

Like many other companies, Hyundai also rushed to ship to the United States, building up 3.1 months' worth of inventory before the tariffs went into effect.

The Tucson pickup truck is assembled at the Pesquería plant in Nuevo León and is sold exclusively in the United States.

YE