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How Much Impact Will Trump's "Tariff Stick" Have? US Auto Manufacturers Organization: Prices Will Increase by 25%!

Cailian Press 2025-03-05 10:43:37

On March 5, Cailian News (Editor: Huang Junzhi) reported that an industry organization representing almost all major automakers warned on Tuesday that U.S. President Trump's new tariffs on Canada and Mexico would lead to a significant increase in car prices.

John Bozzella, CEO of the Alliance for Automotive Innovation, said, "All automakers will be affected by the tariffs imposed on Canada and Mexico."

The organization's members include General Motors, Ford, Toyota, Volkswagen, Hyundai, and Stellantis, but not Tesla.

"Most people expect that the price of some models will rise by 25%, and the negative impact on car prices and vehicle availability will become apparent almost immediately," he added.

On March 3, local time, Trump announced that the previously announced reciprocal tariffs would begin on April 2, and the 25% tariff on Mexican and Canadian goods by the United States would take effect on March 4.

In stark contrast to the automakers, the United Auto Workers (UAW) praised Trump, specifically mentioning his plan to take further tariff actions in April.

The UAW stated, "It is encouraging to see the U.S. President taking proactive steps to end the free trade disaster that has been like a bomb on the working class. We look forward to working with the White House to develop automotive tariffs in April that benefit the working class."

Warnings Abound

Automakers have issued warnings about Trump's tariffs, stating that they would disrupt the North American integrated supply chain that has existed for over 25 years. Some auto parts may cross the border six or more times before final assembly.

"Automotive production and supply chains cannot be relocated overnight. That's the challenge and dilemma: Tariffs on cars in North America could end up increasing consumer costs before jobs return to the U.S.," Bozzella added.

According to reports, Stellantis told dealers on Tuesday that the automaker would continue to engage with the Trump administration on the issue of tariffs, warning that this would add to the "cost burden" affecting customers.

In an email obtained by the media, the automaker wrote, "Given the high level of integration in the industry across North America, these tariffs will put Stellantis' flagship brands—Chrysler, Dodge, Jeep, and Ram—at a disadvantage compared to importers from Korea, Japan, and Europe."

The American International Automobile Dealers Association noted that dealers are already facing higher prices for vehicles and parts, as well as high interest rates. The organization stated, "Tariffs could directly lead to increases of thousands of dollars in sticker prices."

Last week, many automakers met with Commerce Secretary Howard Lutnick to urge the government not to proceed with broad tariff increases.

And last month, Ford CEO Jim Farley also warned

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How Much Impact Will Trump's "Tariff Stick" Have? US Auto Manufacturers Organization: Prices Will Increase by 25%!

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