Kia Tasman pickup US Entry Is Now Contingent on Manufacturing Location

Kia Tasman pickup US Launch Blocked by 50% Import Tariffs

Tariffs have made it nearly impossible for automakers to bring in products they believe will sell well in the U.S. Now, the highly anticipated Kia Tasman pickup US launch is the latest casualty of this unpredictable trade landscape. The chances of the truck coming to America are becoming slimmer and slimmer, as the high combined tariff rate makes it unprofitable to price competitively.

Speaking to Car and Driver at the Los Angeles Auto Show, Kia America vice president of marketing Russell Wager explained that the Tasman—a light truck built in South Korea—will be slapped with a heap of taxes even before it lands on American soil.

Here is a closer look at the massive tariff wall blocking the Tasman and why Kia cannot absorb the cost.

The Tariff Wall

The primary reason the Kia Tasman pickup US launch is impossible under current conditions is the massive cumulative tariff rate applied to imported light trucks:

Wager was adamant that the company cannot absorb the additional tariffs to keep prices competitive in the US market, stating simply, “There’s no way… we can’t do that.”

The EV4 Precedent

The Tasman is not the only model facing limbo. Kia is one of many companies that have had to rethink product launches due to said tariffs. The electric EV4 sedan, which was introduced earlier this year and was planned for the US, is also indefinitely on hold.

• Tariff Instability: The core issue is not just the existence of tariffs, but the uncertainty surrounding them. While the U.S. recently reduced tariffs on autos to 15 percent, the figure continues to move, making it impossible for Kia to lock down a stable import cost to build a viable business case.
• Wager’s Stance: Wager noted that companies that have attempted to absorb the costs have been forced to raise prices later, which often leads to a subsequent sales drop.

Future Outlook

The only workaround for the Kia Tasman pickup US market would be to build the truck in the United States, allowing it to bypass the 50 percent tariff wall. However, this move requires clearing a whole heap of hurdles, including massive investment and retooling efforts, which means the truck remains in limbo until a resolution is made.

The current situation underscores how geopolitical trade policies are increasingly dictating the variety and affordability of vehicles available to American consumers.

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