With the tariffs implemented by President Donald Trump, companies from other countries are rethinking the possibilities of doing business and selling their products in the United States. One of the most affected sectors certainly was the automobile industry, with many companies announcing that they will not produce or sell certain models in America. Recently, it was announced that another vehicle, long-awaited by the Americans, will not be sold in the United States. This is everything we know about this tough decision.
The decision means that America will not see one of the most eagerly awaited models from this automaker
The increase in tariffs applied by US President Donald Trump has had a direct impact on the country’s industrial sector. With the new tariffs, the automobile market has been one of the hardest hit, and there are already signs that the US will soon feel the effects too.
Recently, a big car manufacturer from Asia announced plans to sell its newest vehicle, a car model that has long been awaited by North Americans. With taxes rising, the United States has been left out of the production plans and is unlikely to see this model on the streets unless policies change.
KIA announced the EV4’s production locations, and America is not one of them
According to information provided by KIA, the US will be left outside the plans for a production location for its new model, EV4. The sedan version will only be built in South Korea, while the hatchback will be focused on the European market with a production line at the Slovakian plant in Žilina. Due to this decision, to have one car of this model, the North Americans must import it from South Korea, being subjected to the additional 25 per cent tariffs.
The EV4 is a model designed to be an inexpensive car, which may change once the tariffs are applied to its price. Having this in mind, customers would have more competitive models produced in the US, with similar performance and without the expensive taxes. Besides this decision, other KIA models will come to America after a long wait.
The initial sale price of the EV4 has not yet been disclosed
According to a recent statement made by a KIA spokesperson, the initial sale price of the EV4 has not yet been confirmed. With the 25% tax, it is not clear how KIA will deal with the price once the tariffs can be passed directly to customers, or taken by the company by reducing the sale price. Going further, it is impossible to know for sure how the long-term impact of the tariffs will be and if they will change or not during the following months.
At this point is important to remember that KIA has several plants in the US, some of them capable of producing electric cars, even based on the E-GMP platform, which is used by the EV4. Besides having this technology in the country, the company decided not to manufacture this specific model in the US, and no reason for this was given.
Americans are unlikely to see an EV4 on the streets
The first time the design of the EV4 was revealed was in February, during the KIA EV Day. At that time, different models of electric vehicles were presented to customers, and the EV4 was one of the most commented on. The first units began to be sold in South Korea in mid-March, and the power of this vehicle was a highlight for enthusiasts. For now, the conditions of sale in the US are still uncertain, so the American enthusiasts must wait to see an EV4 in the country. While waiting for EV4, they can enjoy this new model that will arrive soon in the US.
Disclaimer: Our coverage of events affecting companies is purely informative and descriptive. Under no circumstances does it seek to promote an opinion or create a trend, nor can it be taken as investment advice or a recommendation of any kind.
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