U.S. Tariff Shift Could Push Up Prices of Korean Cars in America Starting September 16, 2025, the U.S. will slash tariffs on imported Japanese cars from 25% to 15%, a move expected to give Japanese automakers a major advantage in the American market.
Meanwhile, South Korean vehicles will continue to face the full 25% duty, potentially making them more expensive for U.S. buyers.
The tariff gap puts South Korean automakers like Hyundai and Kia at a competitive disadvantage, as Japanese rivals benefit from lower costs that can be passed on to consumers.
Industry analysts predict this may lead to higher prices for Korean models sold in the U.S., impacting affordability and potentially slowing sales growth.
South Korea’s Trade Negotiator Yeo Han-koo stressed that the government is pursuing ongoing talks with U.S. officials to secure a fairer trade environment. “We are committed to creating a level playing field for Korean automakers in the U.S. market,” Yeo said while in Washington D.C. for follow-up discussions on bilateral trade relations. For American consumers, the immediate effect could be sticker shock on new Korean vehicles.
A Hyundai or Kia that previously competed closely with Japanese models might now come with a higher price tag, making Japanese brands more attractive from a cost perspective.
This policy decision highlights the broader impact of trade measures on everyday consumers and raises questions about how global economic strategies can directly influence car prices in the U.S. market. For buyers considering a Korean car this fall, it may mean paying more than expected or reconsidering alternatives from Japan.
