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Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Kia finally unveils the all-new Stonic compact crossover

About a week after the global debut of the all-new Hyundai Kona compact crossover, sister company Kia rolls out its own B-segment fighter, the stylish Stonic. The two new models are going up against crossovers like the Honda HR-V, Toyota C-HR, Mazda CX-3, Nissan Juke, and Fiat 500X. This is a segment that's big on both style and practicality, and at first glance the Stonic fits both bills. We'll have to wait until this fall to get our hands on it. The Stonic is a handsome car, but its design isn't as bold as something like the Kona or the C-HR. The fascia looks like an updated version of the Kia Soul rather than a shrunken Sportage. The big rectangular eyes flank the corporate tiger nose grille, with a large lower air dam that hides the hardware for the active safety equipment. The profile once again eschews any ties to the Sportage, with hard character lines and a new C-pillar design. There is plastic cladding around the wheel wells and along the rocker panel. Like the Kona, the Stonic is available with a two-tone roof, but rather than being locked into a single color, the Stonic will offer five. That means there's a total of 20 paint combinations. Unlike the rest of the car, the rear of the Stonic pulls from other Kia SUVs. The taillights feature U-shaped LEDs, though there isn't a bod-width reflector like on the Sportage. There's a decent-sized rear spoiler and a faux skid plate on the bottom of the bumper. The hatch doesn't have a flat bottom, so we're curious if this will narrow the opening to the cargo area. The interior carries over the corporate design, with large, easy-to-reach buttons and knobs and large, clear gauges. There are body-colored accents on the dash, the console, and even the stitching on the seats. It's a simple way to brighten a dark cabin. The Stonic will get Apple CarPlay and Android Auto and will be available with heated front seats and keyless entry and ignition. All we have right now are details for the European model, so it's unclear what engines will make it to the US. Look for both the 147-horsepower 2.0-liter four-cylinder and the 175-horsepower turbocharged 1.6-liter four-cylinder to make an appearance. Both engines can be found in the Kona, paired to a six-speed automatic and a seven-speed dual-clutch transmission, respectively.

2018 Kia Rio First Drive | Keep compact and carry on

When Kia announced that it would bring the fourth-generation Rio to the United States, we were rather surprised. The subcompact segment in which it competes isn't exactly hot here, and small cars have tight profit margins. It makes more sense to concentrate on tiny crossovers that are more popular and can sell for more cash. Ford seems to be taking this tack with the impending introduction of the EcoSport, and the delayed introduction of the new Fiesta in America. Even Kia itself has experienced success with sub-compact crossovers with the Soul. Kia seems determined to stick with the segment, though. A Kia representative told us that, even though the U.S. subcompact market may not be booming, it still accounts for about 500,000 cars a year. Plus, if any manufacturers leave the segment, that's an opportunity to pick up some conquest sales. He also said that regardless of the size of the market, Kia still sees a portion of the car-buying public that will always want a budget subcompact, and that it can be a good introduction to the brand. So with that in mind, is the Kia Rio a good introduction to the Korean car company? In general, yes, and we were introduced to it in and around Baltimore, Md., where we were able to try out a top-level Kia Rio EX on everything from cobblestone streets to winding country lanes. And at first glance, the Rio is a handsome little machine. While the previous generation was round and bubbly, the new model looks more aggressive, and has a shape more akin to larger vehicles. Thank the longer, more horizontal grille, slender, swept-back headlights, lower belt line, large lower grille and jutting lip. The hatchback is the more attractive version of the car, but the sedan is far from ugly, which is no small feat for a subcompact. Compared with the European version of the Rio, and even the previous-generation model, though, there are visual differences that reveal the fourth-generation U.S.-spec Rio has succumbed to cost-cutting measures. The first tipoff is the wheels. The alloys on the Rio EX, the only model with alloy wheels, are a minuscule 15 inches. Though admittedly adorable, and probably a boon to ride quality, they do look disappointing when compared to the available 17-inch units on the European model, or even those on the old Rio. The headlights and taillights are plain and simple, too. The headlights are reflector halogen lamps, and the taillights and turn signals use incandescent bulbs.