President Trump’s tariffs are hitting the auto industry in multiple ways, creating havoc for both car companies and buyers trying to assess the impact.
The Trump administration’s 25% tariffs on imported cars and auto parts is expected to disrupt the auto industry and raise car prices by thousands of dollars. And electric vehicles are at particular risk.
Austin dealerships are bracing for a 25% tariff on foreign vehicles, fearing increased costs and reduced inventory.
"Actual impact will depend on a number of factors ... $100 billion to $125 billion in costs across the entire auto industry. In early March, Trump postponed auto tariffs for 30 days. But on Wednesday, he said no more pauses in tariffs for the auto sector.
The US dollar has been falling as President Donald Trump rolls out his tariffs, and it plunged after he unveiled much steeper-than-expected duties on "Liberation Day." That goes against what markets had anticipated before he launched his trade war.
Multiple automakers reported a surge in sales during March as shoppers rushed to dealerships to score a deal before tariffs took effect. But how long the boost will last remains to be seen once
As the region prepares for a potentially "painful adjustment", Asia's automakers could focus more on domestic and regional markets to reduce their exposure to the US, say experts.
One union president told Newsweek that Trump's tariffs could "devastate" the auto industry in Canada and the U.S.