The Tucson’s supply chain is being reshuffled due to tariffs imposed by the Trump administration. The adventurous XRT trim is the first casualty.
The Tucson XRT will no longer be offered in Canada
Most Tucsons sold here were built in Alabama
Trump-era tariffs are the root of the problem
Hyundai Canada has confirmed it will not be offering the Tucson XRT in Canada for the 2026 model year. The reason lies in its sole point of production: Hyundai’s Montgomery plant in Alabama. While the Tucson is assembled in multiple factories worldwide—including the U.S., South Korea, and Mexico, most of the units historically sold in Canada (except for the hybrid and plug-in hybrid) came from Alabama. Ottawa’s retaliatory tariffs against U.S.-built vehicles have now forced Hyundai Canada to source Tucsons elsewhere.
For 2026, conventional gasoline-powered Tucsons destined for the Canadian market will be sourced from Mexico. But one model didn’t make the cut. The XRT trim, introduced for 2025 and exclusively built in the U.S., won’t be crossing the border. Hyundai Canada has decided to remove it from the Canadian lineup, at least until the tariff situation changes.
Here’s Hyundai Canada’s official statement:
“While Hyundai Auto Canada continues to monitor and adapt to the tariff situation, production of some Tucson ICE models for the Canadian market has been altered. (…) Specifically, the XRT trim is temporarily paused for the 2026 model year.”
2025 Hyundai Tucson XRT Review: A Compact SUV That Gets Everything Right
A Highly Significant Model
In the first quarter of 2025, Hyundai Canada imported 3,598 Tucsons from Alabama and another 4,636 from overseas plants. None of the units sold here during that period came from Mexico, a fact that is about to change.
Since April 3, the United States has been enforcing tariffs of up to 25% on imported vehicles, including those from Canada. Ottawa responded on April 9 with countermeasures targeting U.S.-built vehicles, a blow that has hit several automakers relying on cross-border production.
2025 Hyundai Tucson XRTDespite these hurdles, the Tucson remains Hyundai’s sales cornerstone in Canada, accounting for a quarter of the brand’s first-quarter volume. It shares the Alabama facility with two other major models: the Santa Fe and the Santa Cruz, both of which are also feeling the squeeze.
2025 Hyundai Santa Cruz XRTSanta Fe Gas Models Also Pulled
The Santa Cruz, built exclusively in the United States, has been dropped entirely from the Canadian lineup. Likewise, the gasoline-only versions of the Santa Fe—equipped with the 2.5-litre turbocharged four-cylinder—are no longer available here. From now on, the Santa Fe will be offered solely as a hybrid, powered by a 1.6-litre turbo four paired with electric assistance, delivering a combined 231 horsepower and 271 lb-ft of torque.
