The border wall is shown in a background like a semi truck that transports Toyota trucks crosses a bridge after cleaning US customs while entering the United States from Mexico along the border in San Diego, California, on March 4, 2025.
Mike Blake | Reuters
Automobile actions are digesting the announcement of President Donald Trump that he would place 25% tariffs on “all cars that are not manufactured in the United States”, as well as certain car parts.
Trump’s administration had been telegraphying plans to put tariffs on the automotive industry, but the effect of those movements and mechanism for application is beginning to take shape. The president’s executive order said the tariffs would take effect for vehicles on April 3 and for car pieces on May 3.
General Motors The actions fell approximately 7% in the morning negotiation on Thursday, while Stellantis lost more than 3%. TeslaHowever, it was marginally higher, while Ford motor The actions were around the flat line.
“In our coverage, to [original equipment manufacturers]Tesla and Ford seem to be the most protected location given of vehicle assembly facilities, although Ford faces an incremental exhibition in imported engines, “Deutsche Bank analysts wrote in a note on Thursday.” GM has the greatest exposure to Mexico. “
Trump said Wednesday that he would not put a rate on vehicles built in the United States.
Rates apply to imported passenger vehicles and light trucks, as well as key car parts, including engines and transmissions, The White House said on an information sheet.
Some aspects of the rates are still being resolved. The automobile pieces that comply with the United States-Mexico-can-acting will remain free of rates until the Secretary of Commerce can consult with customs and border protection of the United States to discover how to apply tariffs to the non-American content.
The United Auto Workers Union encouraged Trump’s announcement.
“These rates are an important step in the right direction for automatic workers and blue neck communities throughout the country, and now it is in car manufacturers, from the large three to Volkswagen and beyond, to bring good work from the union to the United States,” said the president of the UAW, Shawn Fain, in a statement on Wednesday.
The vehicles are made up of tens of thousands of parts, many of which cross from one place to another by the US border before a final product is completed.
Data and the Global Mobility S&P forecast company Reports, on average, there are 20,000 parts in a vehicle when it collapses to its nuts and bolts. The pieces can originate between 50 and 120 countries.
The firm also reports that 25 automobile manufacturers on average produce 63,900 light passenger vehicles in North America per day. Most of them, approximately 65%, are assembled in the United States, followed by 27% in Mexico and 8% in Canada.
Goldman Sachs analysts wrote Thursday that Trump’s 25% rate could increase the price of imported cars by $ 5,000 to $ 15,000. If approximately 50% of the pieces in a car made in the United States came from foreign sources, the tariff could increase the price of those cars by $ 3,000 to $ 8,000, they added.
President Trump had previously granted car manufacturers an exemption from one month rates for vehicles that meet the commercial rules of the United States-Mexico-Canada.
– Michael Wayland and Michael Bloom of CNBC contributed to this report.
