Kia’s EV Day 2025 event in Spain saw lots of new electric cars and variants thereof get their time in the spotlight. Amid the pomp, presentations, and excitement of a brace of all these new EVs, there was also a frequent question: “When’s it coming to America?”
That, according to Kia officials, is a little tricky right now. It’s no secret that stiff U.S. tariffs may be coming for vehicles produced outside the country. That means headaches for automakers like Kia when they try to plan out how, when and where to build and sell cars.
President Donald Trump has indicated that he aims to impose a 25% tariff on all car imports starting April 2. In the short term, that means new car prices would rise or models could simply stop being sold. A 25% price hike on some cars in ultra-competitive segments would kill it stone dead, so carrying on selling it would be terrible for business. Building fresh factories to swerve tariffs isn’t the work of a moment. They take years and billions of dollars to get going, and that’s tough to plan for at a time when nobody can predict the future.
Photo by: Kia
On the tariffs, Kia President and CEO Ho Sung Song said the firm is keeping its powder dry for the moment. “This is a new world, but we have to study,” he said. “We have to prepare different simulations and scenarios, and we’re doing the job now. It’s too early to talk based on any assumptions because the automotive industry is so complicated.”
That’s perhaps especially true in the EV sector, where options are still more expensive than gas-powered ones (though that’s changing quickly) and the cars may not have the tax credits to lean on, either.
At its EV Day event in 2023, Kia launched an ambitious plan called “EVs for All.” It called for a global expansion of its EV and battery factories, including in the U.S., South Korea, China, Mexico and Eastern Europe. But at least some of those plans were informed by the Biden-era Inflation Reduction Act, the EV tax credits and incentives to build them in America, and fuel economy rules pushing for a more electric market in America.
Photo by: InsideEVs
Since then, Kia has launched the compact EV3 in South Korea and Europe. While the automaker has confirmed it will be sold in the U.S. (and possibly at an enticing price tag of around $35,000), it’s not yet saying when or how—or where the U.S. model could be built. Making a lower-priced EV in America would be tricky for profits, but making it in Mexico or Korea runs into tariff issues now, for example.
It’s the same story for the related Kia EV4 sedan, unveiled at this year’s event. Kia has confirmed that car for the U.S. (in sedan form only, not the hatchback) but its arrival is TBD at present.
Photo by: Kia
Song went on to say that the company can be flexible, as each factory produces a mix of models and it’s leaning more into hybrid cars lately as well. But the impression he gave is that right now, until there’s a firm tariff, tax, or regulation in place, the impact they’ll have is highly unclear. Kia’s situation won’t be much different from many others.
Song reiterated that Kia’s job is to make good quality products at a good price for customers. If that product then becomes 25% more expensive to sell, that balance will likely go somewhat out of whack.
Meanwhile, Chinese EVs are putting huge pressure on legacy manufacturers all over the world. The EV2 for Europe and Korea is Kia’s most affordable electric yet and it feels designed to compete with China’s low-cost options. Yet Song is under no illusions that there’s a hefty gap.
“We have better quality, a better service network, and a better customer experience,” he said, but that currently, Kia can’t overcome the pricing power that Chinese brands offer.
Photo by: Kia
Song was more open about the fate of the PV5 commercial vehicle. It may not be headed to America, thanks to an old rule that imposes tariffs on foreign vans and trucks. “We know the United States has a Chicken Tax for commercial vehicles,” he said.
The Chicken Tax was imposed in 1964 by President Lyndon B. Johnson as a retaliation to France and West Germany putting a tax on U.S. chickens. The Johnson administration put tariffs on potato starch, dextrin, brandy, and light commercial vehicles. Over time, the taxes on the first three were lifted, but the vehicle-focused one has remained in place for decades.
Seeing as the PV5 is a Korean vehicle, its arrival to America isn’t in the cards. “I don’t consider volume for the United States, but we have a plan in Canada,” Song added.
The future of Kia’s EV business may appear tricky in the U.S. thanks to the raft of unknowns currently flying about. But elsewhere in the world, the firm appears to be doing well. For now, Kia is trying to sort through the chaos as much as anyone.
