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Another round of auto tariffs just went into effect. They could change the industry forever

  • Starting May 4, 2025, the US imposed a 25% import tax on most auto parts, including engines and transmissions, affecting the automotive supply chain.
  • The tariffs follow former President Trump's March announcements aimed at strengthening US manufacturing, with exemptions applied to components produced in Mexico and Canada that qualify under existing free trade agreements.
  • The White House offers a phased refund to automakers up to 3.75% of vehicle prices the first year, decreasing to 2.5% in year two and ending after year three to offset tariff costs.
  • General Motors CEO Mary Barra indicated that tariffs are expected to result in a $4 billion to $5 billion expense for the automaker this year, with analyses showing that tariffs could increase the average cost of each vehicle by approximately $4,000.
  • The tariffs have raised concerns about higher costs to car buyers and increased inflation in repair, maintenance, and insurance, impacting every American beyond new vehicle purchasers.
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Wral News broke the news in Raleigh, United States on Saturday, May 3, 2025.
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