The coalition of Jeff Ferry, the prosperous American chief economist, is debating President Donald Trump's panic over the tariffs of “making money.”
President Trump's tariffs on cars and auto parts will hit some automakers more than other automakers, especially among those with a lower proportion of US vehicles sold assembled outside the US.
For example, according to S&P Global Mobility, Hyundai Motor, which includes the brand Genesis and KIA, Mazda, Volkswagen, Brands Genesis and Kia, imported at least 60% of their respective US sales in 2024.
In comparison, Ford, Honda, Stellantis and General Motors have the most cars made in the US, according to the S&P Global Mobility Report.
Trump, which views tariffs as a way to bring tax revenue to fund tax cuts plans while spurring revitalization of domestic manufacturing, announced on Wednesday it would impose a 25% tariff All imported auto.
He indicated that these tariffs, from the previously announced 2.5%, will take effect on April 2, when he expects to announce mutual tariff plans.
When you start shopping, repairs are made automatically as a fee.
The Trump administration said Thursday that the president's move to implement such tariffs “will protect and strengthen the US automotive sector.” The administration argued that while “US production is stagnant,” the foreign automotive industry has expanded due to “unfair subsidies and aggressive industrial policies.”
Ford sign at a dealership in Richmond, California, USA on Friday, June 21, 2024. (Getty Images/David Paul Morris via Getty Images/Bloomberg)
However, “While some argue that tariffs in the automotive industry could boost US manufacturing, only GM, Ford and Stellantis have the excess capacity to increase US production. And automakers cannot make such changes quickly or cost-effectively. “A production shift requires suppliers to move.”
Hyundai Motor Company CEO tells US $21 billion investment
According to the National Automobile Dealers Association, tariffs aggravate the issue of affordability, especially as vehicles are constructed or assembled with parts made 100% domestically.
According to AutoTrader's executive editor Brian Moody, when it comes to car prices, the powers of various markets, except for tariffs, determine how much the price of a car fluctuates.
On Tuesday, February 21, 2023, I used a vehicle sold at a dealership in Colma, California, USA. (Photographer: Getty Images/David Paul Morris via Getty Images/Bloomberg)
Furthermore, it may depend on the number of models made in the US compared to other countries. According to Moody, if a manufacturer creates one model in the US and creates an external model, it can raise prices equally to absorb tariffs without causing a major blow to a particular model. This means that automakers can spread the increase in some models, Moody said.
This is a breakdown of the share of automakers with a percentage of imported sales.
S&P Global Data on Percentage of Imported US Sales (S&P Global Mobility)
