The hopes for a U.S. release of a Kia EV pickup are now under serious threat. New developments suggest that the planned EV — once considered a near-certainty — may be delayed indefinitely, or possibly scrapped altogether, as Car and Driver reports.
Tariff Turmoil: What’s the Problem with Imports
The root cause behind the upheaval is ongoing tariff instability. Vehicles and components imported into the United States from South Korea — including those from Kia — have been hit with steep duties. Though the U.S. recently lowered some auto tariffs from 25% to 15%, other taxes remain very high, such as large tariffs on Korean steel, aluminum and related raw materials.
For a vehicle like an electric pickup — likely to rely on imported components — these added costs destroy the original business case. As Kia’s U.S. marketing chief explained, the project now returns to the “evaluation stage.”
Weakening EV Demand: The Broader Market Context
Compounding the tariff issue is a softening in U.S. EV demand. The expiration of the federal EV tax credit — once worth up to $7,500 — has cooled interest in affordable EVs. Industry insiders say overall EV demand has dropped significantly in the U.S., reducing the potential market for new, lower-cost EV models.
Kia previously intended the EV pickup — along with other upcoming models — to fit a competitive price point. But with demand down and costs up, that price positioning may no longer be feasible.
The EV3 and EV4 are also affected by this issue.
What Kia Says: “Back to the Drawing Board”
According to Kia America’s vice president of marketing, the company simply does not know when tariffs will stabilize — a necessary condition before they can commit to new EV models for the U.S.
He emphasized that the EV4 sedan — another planned model — is already on indefinite hold, and the electric pickup has been pulled back to the evaluation stage. It might never reach U.S. dealers if conditions don’t improve.
Broader Impact: Price Hikes, Reduced EV Lineup
If the pickup is canceled, the consequences will ripple across Kia’s U.S. strategy. Analysts expect price increases across many models — both EVs and internal-combustion vehicles — as tariffs and supply-chain costs bite.
Kia may focus instead on existing models produced in its U.S. plant (e.g., SUVs and ICE/hybrid vehicles), rather than risk launching new EVs under unfavorable financial conditions.
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