Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

OEM Group Protests Auto Tariffs

Alliance for Automotive Innovation says 25% duties would cut U.S. sales, raise vehicle prices.

April 2, 2025
OEM Group Protests Auto Tariffs

The trade group says auto manufacturing is “America’s largest manufacturing sector” already.

Credit:

Pexels/Tom Fisk

2 min to read


 

An automaker trade group says new U.S. trade tariffs on vehicles will but a damper on sales here and drive up prices for American consumers.

The Alliance for Automotive Innovation released a statement by President and CEO John Bozzella pointing out automakers’ current contributions to the U.S. economy and how the group believes new tariffs will actually weaken that impact.

Ad Loading...

“Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the U.S. and reduce U.S. auto exports – all before any new manufacturing or jobs are created in this country,” Bozzella said.

President Donald Trump has said the U.S. will impose 25% tariffs on imported autos starting April 3 and on auto parts starting May 3, with the stated goal of strengthening the U.S. manufacturing base and national security.

But Bozzella pointed out that the complex supply and manufacturing web that automakers rely on “can’t be relocated or redirected overnight.”

The trade group called auto manufacturing “America’s largest manufacturing sector” already.

“Automakers, battery makers and parts suppliers have invested billions in American manufacturing and directly support communities and American workers in Michigan, Tennessee, South Carolina, Alabama, Mississippi, Kentucky, Ohio, West Virginia, Texas, Indiana, Illinois, Missouri, Georgia, New York and more,” Bozzella said.

Ad Loading...

Auto industry analysts say the promised tariffs would increase the already inflated price of new vehicles by thousands of dollars at a time that many consumers are struggling to afford today’s prices.

“Automotive facilities and global supply chains create American jobs, provide Americans with vehicle choice and the big one – support auto affordability in America,” Bozzella said.

LEARN MORE: Tariff Tangle Could Be Bad News for Sales

 

 

 

More Industry

Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →
Industryby Hannah MitchellMarch 3, 2026

Auto Dealers Cautiously Hopeful

Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.

Read More →
Industryby StaffMarch 3, 2026

Black Book: Weekly Market Update

Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.

Read More →
Ad Loading...
white Audi car in a service bay
Industryby Lauren LawrenceMarch 3, 2026

Recall Service Reaches Milestone

Eight state DMVs participate in the Vehicle Recall Search Service created by Carfax and the Alliance for Automotive Innovation to reduce the number of unaddressed vehicle recall repairs.

Read More →
Industryby Hannah MitchellMarch 2, 2026

Meet the Editor: Hannah Mitchell

A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.

Read More →
Summit Updatesby StaffMarch 2, 2026

Enhance Your Dealer's F&I Workflow at Agent Summit

This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 2, 2026

Auto Brands Hold the Line on Retention

A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Lauren LawrenceFebruary 24, 2026

China Leads Battery Production

Between 2020 and 2025, gigafactory capacity grew six-fold and is set to grow another 118% by 2030, according Benchmark data.

Read More →
Ad Loading...
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →