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.
25 Articles
25 Articles
US President Trump's tariffs on car parts came into force
In the U.S., the tariffs announced by President Trump have entered into force on certain car parts. Since midnight (local time) 25 percent surcharge applies. There are facilitations for manufacturers that end up their vehicles in the U.S. They can be refunded part of the tariffs. Moreover, in general, for car parts the additional tariffs on aluminium and steel should not be due. This should avoid a double burden.
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