A person looks at a new vehicle with a Toyota dealership in El Monte, California, Thursday, March 27, 2025. (AP photo / Jae C. Hong)
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Jae C. Hong / AP
Thursday, the 25% prices of President Trump on imported cars entered into force. The import tax has already sparked large movements by car manufacturers, from layoffs to breaks in car expeditions to delayed price hikes.
As a result, industry analysts expect consumers to see higher car prices, and some buyers have rushed to dealerships in anticipation.
From May 3, the price will also apply to imported car parts, such as engines and transmissions, which could add to the cost of cars assembled in the United States
The Trump administration presented a range of reasons for these prices, but said that its main objective was to develop American manufacturing.
White House officials said foreign companies would absorb pricing costs. But a Study by the National Office of Economic ResearchA non -profit organization non -supporter, noted that it was not what happened during Trump’s first term – when the costs were mainly transmitted to American companies and consumers.
At least initially, car manufacturers approach prices differently. The common theme here? Uncertainty on the coming road.
Jobs in Midwest factories
Stellantis, which makes Jeep, Dodge, Ram Trucks and Chrysler, announced a temporary production stop in some of its assembly factories in Mexico and Canada. Consequently, the company said that 900 people would be temporarily dismissed in several stellantis factories in Michigan and Indiana.
The director of North American exploitation of Stellantis, Antonio Filosa, said on Thursday in an email sent to employees if the company continues to assess the medium and long-term effects of the tariffs on its operations, immediate layoffs and production breaks “are necessary given the current market dynamics”.
The luxury car manufacturer puts brakes on American expeditions
Jaguar Land Rover said that he would interrupt the expeditions of his British manufacturing cars to the United States this month as she weighs longer term plans.
“The United States is an important market for JLR luxury brands,” the company said in a statement sent by e-mail on Saturday. “While we are working to resolve new commercial terms with our business partners, we promulgate our planned short -term actions, including a shipping break in April, while we are developing our medium -term plans.”
The company provided electric Jaguar SUVs for Waymo, the driver -free service held by the mother company of Google. It is not yet clear if the prices will affect the Waymo service.
Buyers rush to beat the prices
While car manufacturers weigh if it is necessary to invoice more, buyers seem to take advantage of the pre-tariff prices. The South Korean company Hyundai declared record sales of its cars last month – its second highest month of sale in the history of the company. The automaker has increased production in the United States – not in response to new prices, just a happy timing, according to managers – which should protect them from some of import taxes. A spokesperson for Toyota said that the Japanese car manufacturer had also seen sales at the end of March thanks to the increase in customer traffic from dealerships.
Although concessionaires generally obtain an increase in the spring season, helped by consumer tax reimbursements, there is data to safeguard an integrated rush into the prices: a survey carried out at the end of March by the Autopacific market company revealed that 18 percent of new vehicle buyers in the United States provided their purchase of a planned car resulting from prices.
Price and price freeze
Before the entry into force of the prices, the manufacturer of Italian luxury sports car Ferrari said that most of its cars would increase up to 10% due to new policies. Some current models, including Roma which has a sticker price of almost a quarter of a million dollars, would be exempt from the increase. Ferrari declared in a press release that it will cover the tariff costs for the Roma, the 296 and SF90.
According to a Wall Street Journal reportBMW said that it will cover the inflated costs of the Trump administration prices on its cars made in Mexico, until the least May.
Other companies offer customers a suspended window to buy without fear of higher prices.
Hyundai has decided to reassure customers that he would not increase the prices of its current range of models for the next two months – before June. Toyota, which has several production plants in the United States, also does not intend to increase prices, said company spokesperson Victor Vanov in a statement sent by e-mail. The United States was the largest Toyota market last year, with more than 2 million vehicles sold.
They can be inevitable: the COX Automotive market research company predicts that cars affected by prices could see prices increase by 10 to 15%. The prices of cars not reached by the full price of 25% could jump by 5%.
Some car manufacturers reduce prices in response. Ford, who Makes more of his cars in the United States that any other car manufacturer is Offer employee prices For customers as part of its promotional campaign “From America, for America”. Rival stellantis a would have followed suit. Nissan has reduced the prices of some of its best -selling models such as the Rogue and the Pathfinder, the car and the driver reported, to help buyers cope with a “difficult landscape of purchasing cars”.
Meanwhile, the industry is waiting for the other shoe to fall, when the prices of car parts begin. Auto analyst Mel Yu told Reuters that imported car parts represent between 40 and 80% of cars made in the United States and 20 to 40% of retail.
“No matter where they are manufactured, the car prices will increase,” said Yu. “The impact of parts of the parts will be fairly fast.”
