Trump's auto tariffs expected to cost industry over $100 billion, with millions fewer cars sold

[BumRushDaShow]

Source: The Independent

Saturday 12 April 2025 23:33 BST


Despite the on-off nature of President Donald Trump’s tariffs on U.S. trading partners, among those that still stand is the 25 percent import tax on imported vehicles that went into effect on April 3. Wall Street and automotive industry analysts foresee massive global implications for the industry if these tariffs remain in place, with vehicle sales plummeting by millions as prices for both new and used cars surge, according to reporting by NBC News.

Research reports put the increase in costs for the automotive industry due to Trump’s tariffs in the region of $100 billion, with Boston Consulting Group putting the upper range at $160 billion for both U.S. and non-U.S. manufacturers. “What we’re seeing now is a structural shift, driven by policy, that’s likely to be long-lasting,” Felix Stellmaszek, BCG’s global lead of automotive and mobility, told CNBC.

“This may well be the most consequential year for the auto industry in history — not just because of immediate cost pressures, but because it’s forcing fundamental change in how and where the industry builds.”

In the U.S. alone, automakers could see costs increase by $107.7 billion, according to the Michigan-based think tank, the Center for Automotive Research. That figure includes $41.9 billion for the big three U.S. automakers — General Motors, Ford, and Stellantis, the parent company of Chrysler.

Read more: https://www.independent.co.uk/news/world/americas/us-politics/trump-tariffs-cars-price-increases-b2732283.html

[Tarzanrock]

1. Then there is the "ripple" effect of those losses all across every town, village and city in America.

I'm guessing about an 8x "ripple" effect of those "losses" all across car dealerships, auto parts manufacturers, auto repair shops, banks, financing/lending companies, retail shops, fast food businesses, etc. in every town all across the United States. Thanks, Turd and Republican Fascists.

[Dan]

2. The people that voted for Trump wanted a business man

One that had the acumen to run America like a business, so this was the reason to vote for him. The Misogyny, Rascism, Criminality, Anti-Intellectualism, Anti-Science and Stupidity were just icing on the cake.

Of course if they had turned off Fox News they might have discovered that he bankrupted his businesses, cheated his investors, cooked the books, short-changed or failed to pay off his vendors/creditors and when threatened with legal action would take everyone to court where proceeding would end up in bankrupting people seeking accountability. That is the business man that we have running the country.

I wonder if he has explored the idea of not paying our legal debt to foreign nations or defaulting on the Bonds, I wouldn’t put it pass him to have those discussions to see the feasibility of that action. I also wonder if foreign countries are also considering that possibility. Trump is a man lacking in any morality, ethics or integrity seemingly acting as if the world is now subject to his ‘Doctrine of Discovery’.

[BumRushDaShow]

3. Anyone who lived in NY, NJ, CT, & PA

knew about his "6-bankruptcy 'acumen'". But most of his MAGat vote didn't come from those states so they really had no idea about "the truth".

[Dan]

4. They could have found out - they just didn't want to know.

IMO.

Some look at Trump like a religious icon, personally I can’t wait for the crucifixion.

[BumRushDaShow]

5. His "TV persona" seemed to obscure the actual substance of his "businesses".

[Dan]

9. Using that logic

We can get Superman and Batman to prevent crime.

[BumRushDaShow]

11. That's the type of fantasy world MAGats have created.

All the world's a stage...

[PCB66]

6. I bought a new vehicle last week

I had been thinking of waiting until the summer but decided to get in before the tariffs hit. A 2025 Acura RDX. Assembled in Ohio but with about 50% foreign made parts.

A couple of weeks ago the dealership was advertising $3K discounts on the almost $60K vehicle on the Internet but none were offered on the day I was there. The dealership was the only one in the Tampa area.

I was at the dealership for four hours. I was the only sales customer there.

The sales manager told me they expect at least a 10% increase in price with no discounts. He said they expect it to really hurt sales.

[tinymontgomery]

12. We brought a Honda Hybrid last week

like you, wanted to get it before the tariffs hit, 10 percent increase. There were 7 on the lot Monday of model we wanted, on Friday when we
went they were all gone so we had to go down one step.

[Attilatheblond]

7. Business opportunity: Tow Truck service

People are gonna have to be running their cars to death cuz damned few will be able to afford new ones PDQ

[Vinca]

8. There will a whole lot of layoffs in the U.S. auto industry. Guess that's what people voted for.

[msongs]

10. UAW is OK with this. nt