Summary
Trump warned automakers not to raise prices after announcing a 25% tariff on imported vehicles starting April 3, claiming the tariffs would be “great” and benefit U.S. manufacturing.
Industry leaders, including GM, Ford, and Stellantis CEOs, expressed concerns about inevitable price increases, with experts warning tariffs could add thousands to car costs.
Auto suppliers stated that absorbing tariffs is impossible, and dealers fear affordability challenges for consumers.
While the United Auto Workers union support the move as a job creator, trade groups predict higher prices and fewer manufacturing jobs.
That doesn’t convey just how insanely complex car-manufacturing supply chains actually are. And the transition to just-in-time manufacturing has meant that stock on hand is kept to a bare minimum, so the impact of disruptions is even greater than it would have been a generation ago.