Autoblog and Yahoo may earn commission from links in this article.A Tariff WorkaroundKia has kicked off US production of the Sportage Hybrid, and this shift could be just as important for the bottom line as it is for shoppers. The first Sportage Hybrid rolled out of Hyundai Motor Group’s Metaplant in Georgia on June 2, marking not only the first Kia-badged vehicle built there but also the first time the Sportage Hybrid is assembled in America.Up until now, every Sportage Hybrid came from South Korea, which meant a 15% US tariff right off the bat. By shifting production to Georgia, Hyundai Motor Group is dodging what it called a looming $5 billion tariff bill on imports, Automotive News reports. In short, one of Kia’s key models just got a lot cheaper to build for the US market.AdvertisementAdvertisementThat’s a big deal because the Sportage isn’t just another crossover for Kia – it’s the brand’s top seller, and hybrid demand is climbing fast. Kia doesn’t share exact hybrid sales, but reports say deliveries have spiked lately, giving the brand even more reason to build these hybrids closer to home.KiaMore Power, More Trims, and a Lot More TechThe 2026 Sportage Hybrid sticks to a proven formula but adds a few worthwhile upgrades. You still get a turbocharged 1.6-liter gas engine with an electric motor and a six-speed automatic, but now total output bumps up to 232 horsepower – a small but welcome boost.Beyond the familiar trims, the hybrid now gains an S variant and a rugged-looking X-Line model, giving buyers more options. AWD variants also get Terrain Mode settings for snow, mud, and sand, for that extra confidence for rougher weather or occasional dirt-road detours.The visual updates are subtle but do stand out. Tweaked bumpers, new LED lighting, fresh wheel designs, and Kia’s latest Star Map daytime running lights give the Sportage Hybrid a bit more presence, but the overall shape stays familiar. It still looks sharp enough to catch your eye in a sea of plain compact SUVs.AdvertisementAdvertisementInside, the focus is on making life easier. There’s a curved display setup with optional 12.3-inch screens front and center, plus wireless Apple CarPlay and Android Auto, over-the-air software updates, and Kia’s latest Connected Car Navigation Cockpit. All of it helps the Sportage feel more like a premium SUV without the premium price.Built for ComfortBeyond the numbers, the Sportage Hybrid still feels like a crossover built for comfort above all. Autoblog had a chance to drive one last year, and we can say that Kia is doubling down on refinement. The hybrid system delivers smooth, linear power, and the six-speed automatic skips the rubber-band sensation you get from some CVTs. The cabin stays impressively quiet at highway speeds, which isn’t always a given in this segment.With production moving to Georgia, the 2026 Sportage Hybrid is set to do double duty – keeping Kia’s momentum strong in the US and easing a costly tariff problem. The big question: will those savings eventually show up in the price tag for buyers?View the 5 images of this gallery on the original articleAdvertisementAdvertisementThis story was originally published by Autoblog on Jun 3, 2026, where it first appeared in the News section. Add Autoblog as a Preferred Source by clicking here.