Kia America stated that it will focus on domestic production in response to the automobile tariffs imposed by U.S. President Donald Trump.
Steven Center, Chief Operating Officer (COO) of Kia America, noted in a Yahoo Finance interview on the 16th (local time) that “we are trying to make the best possible decision for Kia,” adding, “that means producing as many cars as possible here (in the U.S.).”
The Trump administration will impose a 25% tariff on automobiles from Mexico and Canada starting on the 2nd of next month. Korea has not yet been included in the tariff targets, but uncertainty remains as the U.S. has hinted at tariffs on other countries, including Korea.
Center COO explained that “(the tariff policy) will have different impacts on each brand,” adding, “Kia has a solid production and distribution base in the U.S., so there are sufficient strategies to prepare.”
Kia sold 63,303 units in the U.S. market last month, a 7.2% increase compared to the same period last year, marking the highest sales performance to date as of February. Yahoo Finance noted that localizing production in the U.S. is a significant part of Kia's growth plans, and part of the electric vehicle production will also be moved to the U.S.
Center COO stated, “We are planning to produce electric vehicles in Georgia,” adding, “this is something that was planned before the current tariff discussions.” He also mentioned that Kia has been in the U.S. for over 30 years and has invested a substantial amount in the U.S. manufacturing sector and supply chain. Hyundai Motor Group is currently working on a project to build an electric vehicle factory in Bryan County, Georgia, investing a total of $7.6 billion (about 11 trillion won).