Automakers warn new Trump tariffs will boost costs, cut vehicle sales


WASHINGTON — A group representing General Motors Toyota, Volkswagen and other major automakers warned new 25-percent tariffs President Donald Trump plans to impose next week on imported vehicles will hurt US consumers.
“Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the US and reduce US auto exports—all before any new manufacturing or jobs are created in this country,” said Alliance for Automotive Innovation John Bozzella in a statement.
The group represents every major automaker including Ford Motor, Hyundai, Stellantis, Honda, BMW and Mercedes-Benz.
Bozzella said the group supports Trump’s goal of more US auto production.
“We are committed to building and investing in the U.S., but these facilities and supply chains are massive and complex and can’t be relocated or redirected overnight,” Bozzella added.
The White House did not immediately comment.
Ford CEO Jim Farley told employees in an email Friday “the impacts of the tariffs are likely to be significant across our industry—affecting automakers, suppliers, dealers and customers.”
Despite the fact that more than 80 percent of vehicles Ford sells in the United States are assembled in America “this does not mean Ford is immune to the impact of tariffs, which could be meaningful,” Farley added.
Other questions remain open including whether Trump will extend 25-percent tariffs imposed earlier this month on vehicles assembled in North America that are not exported under a free trade agreement and if next week he will impose reciprocal tariffs on the EU and others that further hike automotive tariffs.
The White House said on Wednesday it expects the new tariffs on autos and auto parts to raise $100 billion in revenue over the next year.
Automakers may spread the tariff cost between US-produced and imported models, cut back on features, and in some cases, stop selling affordable models aimed at first-time car buyers, as many of those are imported and less attractive if they carry a higher price tag.

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