agent Entrepreneur logo
MenuMENU
SearchSEARCH

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.

April 3, 2025
Auto Industry Reacts to Tariff

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.

Credit:

Volkswagen

2 min to read


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.

Ad Loading...

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. 

Ad Loading...

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

 

 

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby 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 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 →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →