Headlines
Automakers warn that Trump tariffs will hike vehicle prices as much as 25%
Published by Global Banking and Finance Review
Posted on March 4, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on March 4, 2025
By David Shepardson
WASHINGTON (Reuters) -A trade group representing nearly all major automakers warned on Tuesday that new 25% tariffs on imports from Canada and Mexico imposed by U.S. President Donald Trump will lead to drastic price hikes.
"All automakers will be impacted by these tariffs on Canada and Mexico," said John Bozzella, who heads the Alliance for Automotive Innovation that represents all major automakers in the U.S. except Tesla. Members include General Motors Ford, Toyota, Volkswagen, Hyundai and Stellantis.
"Most anticipate the price of some vehicle models will increase by as much as 25% and the negative impact on vehicle price and vehicle availability will be felt almost immediately."
Automakers have sounded the alarm that the tariffs will disrupt the integrated supply chain across North America that has been in place for more than 25 years. Some auto parts can cross a border six or more times before final assembly.
"You just can't relocate automotive production and the supply chain overnight. That's the challenge and the dilemma: auto tariffs in North America could end up increasing costs on consumers before jobs come back to the country," Bozzella added.
Last month, Ford CEO Jim Farley warned that 25% tariffs on Mexico and Canada would "blow a hole" in the U.S. auto industry. "What we're seeing is a lot of cost, a lot of chaos," he said last month.
The United Auto Workers praised Trump, noting his plans for further tariff actions in April.
"We are glad to see an American president take aggressive action on ending the free trade disaster that has dropped like a bomb on the working class," the union said. "We look forward to working with the White House to shape the auto tariffs in April to benefit the working class."
The American International Automobile Dealers Association noted dealers already face rising vehicle and parts prices and high interest rates. "Tariffs could directly contribute to thousands of extra dollars on sticker prices," the group said.
(Reporting by David Shepardson; Editing by Mark Porter and Richard Chang)