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- President Trump has threatened to raise tariffs on South Korean products to 25%.
- The threat comes as automakers Hyundai and Kia reported record U.S. sales in 2025.
- Higher tariffs could result in higher sticker prices for consumers on popular models such as the Hyundai Tucson and Kia Sportage.
President Donald Trump has threatened to raise tariffs on South Korean products to 25%, which could spell bad news for popular automakers Hyundai and Kia.
In a Jan. 26 post on Truth Social, President Trump said, “Because the South Korean Congress has not enacted a historic trade agreement that is South Korea’s prerogative, I am hereby increasing South Korea’s tariffs on automobiles, lumber, pharmaceuticals, and all other reciprocal tariffs from 15% to 25%.”
“Our trade agreements are extremely important to the United States,” Trump wrote. “In each of these deals, we have acted quickly to reduce tariffs in line with the agreed deals. We naturally expect similar action from our trading partners. South Korea’s Congress has not implemented the agreement with the United States.”
What does that mean for Hyundai and Kia buyers?
The threat of higher tariffs comes as Hyundai Motor Co. and Kia Motors Corp. report record sales in the U.S. in 2025.
Hyundai announced on January 3 that its sales in the United States reached a record high of 901,686 units for the fifth consecutive year. Kia also said it sold a record 852,155 vehicles in the U.S. in 2025.
Sticker prices could rise as car buyers paid a record average price of $50,326 for a new car in December 2025, according to Kelley Blue Book.
The average transaction price for Hyundai Motor Group, which includes the Hyundai and Kia brands, was $38,893 in December, the 10th highest total among major automakers.
Kia and Hyundai did not respond to requests for comment.
What are Hyundai and Kia’s best-selling cars in the United States?
Hyundai’s best-selling vehicle in the U.S. in 2025 was the Tucson, with 234,230 units sold.
Kia’s best-selling vehicle in the U.S. in 2025 was the Sportage, with 182,823 units sold.
