President Donald Trump is threatening to increase tariffs on South Korean goods to 25%, and that could be bad news for popular automakers Hyundai and Kia.
In a Jan. 26 post on Truth Social, Trump said, “because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%.”
“Our Trade Deals are very important to America,” Trump wrote. “In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to. We, of course, expect our Trading Partners to do the same. South Korea’s Legislature is not living up to its Deal with the United States.”
The threat of increased tariffs comes as Hyundai and Kia have both reported record sales in the United States in 2025.
Hyundai reported on Jan. 3 that it achieved a record U.S. sales total for the fifth consecutive year, with 901,686 vehicles sold. Kia said it also sold a record 852,155 cars in the U.S. in 2025.
The possibility of higher sticker prices comes as car shoppers paid a record average of $50,326 for new cars in December 2025, according to Kelley Blue Book.
Hyundai Motor Group, which includes both the Hyundai and Kia brands, averaged a transaction price of $38,893 in December, which was the tenth-highest total among major automakers.
Kia and Hyundai did not immediately respond to a request for comment.
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Hyundai’s best-selling U.S. vehicle in 2025 was the Tucson, which sold 234,230 cars.
Kia’s best-selling U.S. vehicle in 2025 was the Sportage, which sold 182,823 cars.

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