Auto Industry Reacts to Tariff
As the world absorbs separate reciprocal duties on imported goods, the sector starts adjusting to the 25% tariff on vehicles, awaits parts equivalent.

Volkswagen is among automakers that stand to be impacted the most by the auto tariffs because it imports about 80% of its U.S.-sold vehicles.
Volkswagen
Twenty-five percent U.S. tariffs on vehicle imports took effect Thursday as the world reeled from separate reciprocal tariffs on imported goods.
Though the sweeping reciprocal tariffs won’t be stacked on top of the vehicle duties, the latter will be added to tariffs on steel and aluminum imports, as well as 25% tariffs on certain auto parts set to take effect on May 3.
Industry analysts have said they expect the tariffs to result in at least a 10% increase on already high new- and used-vehicle prices. Though many vehicles sold in the U.S. are assembled here, they’re made with parts from around the world.
Both U.S.-based and overseas automakers reacted to the vehicle tariffs in various ways.
Ford extended employee vehicle discounts to the public – “You pay what we pay,” it says on its website.
Jeep maker Stellantis said it will temporarily shut down a plant each in Canada and Mexico and lay off 900 U.S. workers as it metabolizes the tariffs and decides how to move forward.
Germany-based automaker Volkswagen, along with German cohort Mercedes, plus Volvo, Mazda and Hyundai, is among automakers most exposed to the new tariff. It imports about 80% of its U.S. sales units, according to S&P Global Mobility.
The German Association of the Automobile Industry, issuing a statement calling for European unity along with openness to negotiation, said the auto tariffs “mark a fundamental turning point in trade policy.”
“It represents the US's departure from the rules-based global trading order - and thus a departure from the foundation for global value creation and corresponding growth and prosperity in many regions of the world,” the trade group said. “This is not America first; this is America alone.”
LEARN MORE: OEM Group Protests Auto Tariffs
Originally posted on F&I and Showroom
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →