Tariffs Predicted to Decrease US and Canada Auto Sales by 1.8m as Audi Holds Cars in Ports
A new report indicates that US and Canadian auto sales could decrease by 1.8 million units this year and remain stalled over the next decade if an international trade war intensifies following President Trump's tariffs, which include a 25% tax on all vehicle imports. Over the next decade, light-duty auto sales in the US and Canada are predicted to be 7 million units lower than the initially projected 24.6 million vehicle sales if there were no trade conflicts and promising economic growth, according to the forecast provided by Detroit-area auto advisory firm Telemetry to Reuters. The effects of the Trump Administration's tariffs are already evident, as companies like Volkswagen's Audi are holding cars that arrived in US ports after the 25% levy took effect on April 3. Audi currently has around 37,000 vehicles in its US inventory, or two months of stock. Those 37,000 cars will remain available to US customers.
European automakers like Audi are among the manufacturers hardest hit by Trump's tariffs, and the EU is reportedly seeking a zero tariff from India on auto imports, according to a separate Reuters report. India, which currently imposes a tariff on EU vehicle imports exceeding 100%, has remained open to reducing tariffs to 10%. In March 2024, India announced its new EV policy, which allows automakers to import a maximum of 8,000 cars annually at a reduced customs duty of 15%. That number has proven to be too low for some, as the Indian auto industry has now been lobbying for the country to retain a tariff of at least 30% on EU imports and keep import duties on electric vehicles (EVs) for four years. India's possible levy reduction and continuation of its EV import duties would benefit Tesla, which is scheduled to launch sales in India this year using exports from its Berlin, Germany factory.
Nissan-owned Infiniti has also reportedly stopped taking orders for its QX50 and QX55 crossover SUVs in America, Carscoops reports. The QX50 is Infiniti's best-selling model in the US behind its QX60. Infiniti's QX50 and QX55 are both assembled in Mexico alongside Mercedes-Benz's GLB via a joint venture between the two companies; however, Infiniti is still on course to discontinue the QX50 and QX55 after the 2025 production year. According to Japan-based business newspaper Nikkei, Nissan, which is headquartered in Yokohama, Japan, is considering moving a portion of its best-selling Rogue production to the US. Around 25% of Nissan's. Jaguar Land Rover has responded to the Trump administration's tariffs by halting US shipments for a month, with exports slated to resume within two months. The British automaker says its current US inventory can support 60 days' worth of sales.
Trump has reassured Americans regarding his administration's auto tariffs, saying: 'Hang tough; it won't be easy, but the end result will be historic.' While Americans are facing higher new and used car prices shortly, Nissan's consideration of moving part of its Rogue's production to the US indicates that the President's goal of increasing domestic vehicle production is taking shape. However, Telemetry's economic forecast predicts that auto sales could decrease by 1.8 million units this year and remain stalled over the next decade if an international trade war intensifies and undermines Trump's goals—even if domestic manufacturing increases.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
19 minutes ago
- Axios
Amid backlash, Tesla remained resilient in Texas
Even as Tesla deliveries plunged nationally this year amid Elon Musk's very visible (if short-lived) alliance with President Trump, there was at least one state where Tesla registrations were up: Texas. Why it matters: The registration data, obtained by Axios through public information requests, indicates loyalty to the brand in its home base, including Texas' large urban and suburban counties. The depth of conservatives' enthusiasm for Musk's automobiles now faces a major test amid the absolute meltdown last week between the Tesla CEO and the president. By the numbers: Texans registered 12,918 new Teslas in the first three months of 2025, a period when Musk, who contributed more than $250 million to a pro-Trump super PAC during the 2024 election campaign, was enmeshed in the Trump administration as the overseer of DOGE, the president's cost-cutting initiative. Over the same period in 2024, Texans registered 10,679 Teslas. That's a 21% increase year over year. The intrigue: The spike in Texas registrations came as Tesla was flailing elsewhere. Tesla's vehicle deliveries plunged 13% globally in the first quarter of 2025 (336,681 electric vehicles) compared with Q1 2024 (386,810). Tesla vehicles were torched at showrooms and the brand's reputation cratered. Zoom in: Tesla saw year-over-year improvements in its sales in some of the most populous Texas counties. In Travis County, new Tesla registrations grew from 1,369 in the first quarter of 2024 to 1,424 during the first quarter of 2025. In Harris County, they grew from 1,526 to 1,837 during the same period. Tesla registration grew from 1,316 to 1,546 in Collin County and from 990 to 1,146 in Dallas County. In Bexar County, registrations grew from 631 to 664. What they're saying:"It's homegrown pride," is how Matt Holm, president and founder of the Tesla Owners Club of Austin, explains the car company's resilience to Axios. "And regardless of all the drama going on these days, people can differentiate between the product and everything else going on, and it's just a great product." "Elon has absolutely and irreversibly blown up bridges to some potential customers," says Alexander Edwards, president of California-based research firm Strategic Vision, which has long surveyed the motivations of car buyers. "People who bought Teslas for environmental friendliness, that's pretty much gone," Edwards tells Axios. Yes, but: The company had been enjoying an increasingly positive reputation among more conservative consumers. Musk was viewed favorably by 80% of Texas Republicans polled by the Texas Politics Project in April — and unfavorably by 83% of Democrats. In what now feels like a political lifetime ago, Trump himself even promoted Teslas by promising to buy one in support of Musk earlier this year. "In some pockets, like Austin, you have that tech group that loves what Tesla has to offer, can do some mental gymnastics about Musk, and looks at Rivian and says that's not what I want or might be priced out," Edwards says. Between the lines:"Being in the state of Texas, you're naturally conditioned to think you're better than everyone else in the U.S. And when you buy a Tesla" — a status symbol — "that's what you're saying. It doesn't surprise me that there's an increase in sales" in Texas, Edwards says. Plus: Tesla's resilience in Texas could have practical reasons as well, Edwards says. Texas homes — as opposed to, say, apartments in cities on the East Coast — are more likely to have a garage to charge a car in, he adds. What's next: Musk said late last month that Tesla was experiencing a "major rebound in demand" — without providing specifics. But that was before things went absolutely haywire with Trump and Tesla stock took a bath last week.
Yahoo
22 minutes ago
- Yahoo
After vowing ‘90 deals in 90 days,' the White House's rhetoric runs into reality
Donald Trump clearly wants the public to believe he recently struck a trade deal with China. The president did not actually reach such an agreement, but he's leaned into his fictional narrative with great enthusiasm lately. Last Thursday, for example, the Republican published an item to his social media platform, noting that he'd spoken to Chinese President Xi Jinping about 'the intricacies of our recently made, and agreed to, Trade Deal.' Soon after, during an Oval Office event, he again touted the same 'trade deal.' A day later, Trump posted a follow-up item, announcing the members of a delegation who would travel to London to meet with Chinese officials about 'the Trade Deal.' The bad news is that the 'trade deal' in question does not exist, no matter how many times the American president pretends otherwise. The good news is that administration officials will actually have some discussions with their Chinese counterparts. NBC News reported: Senior U.S. and Chinese officials will meet in London on Monday in an effort to de-escalate the bitter trade dispute between the world's two biggest economies that has roiled the global economy, with China's restrictions on critical minerals high on the agenda. About a month ago, Trump announced what he characterized as a 'deal' with China, but the closer one looked at the details, the more the truth came into focus. Georgetown University professor Abraham Newman wrote a great piece for MSNBC that explained, "While the U.S. did avoid a major economic calamity, this is not a deal. The U.S. blinked. ... Far from some diplomatic coup, the U.S. climb down reflects the economic risks of maintaining such high tariffs.' The editorial board of The Wall Street Journal came to the same conclusion, noting, '[T]he China deal is more surrender than Trump victory.' Complicating matters, while the White House and Beijing reached a tentative agreement that paused the two countries' tit-for-tat tariffs, both countries have since accused each other of violating the agreement. All of which brings to mind Peter Navarro, the White House's top trade adviser, who boasted in April, 'We're going to run 90 deals in 90 days.' Navarro added that such a plan 'is possible' in part because 'the boss is going to be the chief negotiator.' Roughly two months later, the grand total currently stands at zero. Generous observers might be inclined to give Trump credit for striking a deal with the U.K., but as The Washington Post's Dana Milbank summarized in his latest column, that deal is really more of a 'vaguely phrased framework with Britain that still hasn't been made public.' What's more, a new Politico report added that a month after the agreement was announced, the U.S.-U.K. duties 'remain in place' and 'there is still no clear timeline for when they'll lift.' Or to put it another way, two-thirds of the way into the '90 deals in 90 days' vow, the White House appears to be 90 deals short. Undeterred, Navarro returned to Fox Business late last week, where he was asked when the public should expect to see some breakthroughs. 'We will have deals,' Navarro said. 'It takes time. Usually, it takes months and years. In this administration, it's gonna take more like days.' On average, the typical timeframe for a U.S. trade deal is roughly 30 months. That didn't deter Navarro from pushing the '90 deals in 90 days' talking point in April, and it apparently didn't stop him from claiming again last week that Team Trump will produce amazing results in a matter of days. The White House's top trade adviser should be going out of his way right now to lower expectations after already having set an impossibly high bar. For reasons unknown, Navarro is doing the opposite, setting up the Trump administration for additional failure. This article was originally published on
Yahoo
22 minutes ago
- Yahoo
Democrats have a dirty secret - they actually like some of the tax cuts in Trump's ‘big beautiful bill'
Some of the sweeping tax cuts proposed in President Donald Trump's massive spending package have found support among Democrats — even as they are expected to oppose the legislation over proposed cuts to Medicaid and other government services when it comes up for debate in the Senate later this month, according to a new report. The gargantuan budget package, which House Republicans and the White House have dubbed the One Big Beautiful Bill Act, passed the House by a single vote last month and is now drawing heat from fiscal hawks in both chambers as well as Tesla CEO Elon Musk, who was fresh off his months-long stint as a special government employee when he began threatening to back challengers to any legislator who votes for the bill. Still, there are facets of the proposal that have appeal for some Democrats, the New York Times reports. Virginia Rep. Don Beyer, a Democrat who is also a wealthy car dealership owner, told the Times his party is 'in general very much in favor of reducing taxes on working people and the working poor' when asked about Trump's plan to end taxes on service workers' tips. 'Those people are living on tips,' he added. Trump's tip tax cut plan has also attracted attention from Sen. Jacky Rosen of Nevada, a state where service workers make up a large and powerful voting bloc that has traditionally supported Democrats but shifted to Trump in large numbers during the 2024 presidential election, handing him the Silver State's electoral votes. Rosen, a Democrat, took to the Senate floor last month to advance a bill approving Trump's 'no tax on tips' plan. It passed unanimously even though the measure was largely symbolic because the U.S. constitution requires tax laws to originate in the House 'I am not afraid to embrace a good idea, wherever it comes from,'. she said at the time in remarks on the Senate floor. Yet despite the support for some of the individual tax provisions in the plan, it's highly unlikely that it will be able to muster enough if any Democrats to ease the way to Trump's desk, even under a Senate procedure known as budget reconciliation, which fast-tracks some types of spending legislation without subjecting it to the upper chamber's de facto 60-vote threshold for passage. Democrats are expected to unanimously vote against the legislation in the upper chamber, where it has also attracted opposition from some Republicans who've complained that the cuts to spending in the package don't go far enough to offset the reduced revenue caused by provisions meant to enact Trump campaign promises to end taxes on tips for service workers, as well as taxes on overtime pay for hourly workers and on social security benefits for seniors. Nonpartisan experts such as those at the Congressional Budget Office have warned that the reduced tax receipts would blow a massive hole in the federal budget and jeopardize America's long-term fiscal outlook, but that hasn't stopped some prominent Democrats from getting behind the individuals tax cuts. Trump and his allies hope the prominent tax cut proposals will blunt Democrats' efforts to paint the One Big Beautiful Bill Act as a giveaway to wealthy GOP donors that will gut government services while only providing limited relief for working-class voters. To that end, the president and others in his camp have routinely taken to social media to argue that anyone who votes against the bill is effectively voting for tax increases because the legislation makes permanent a number of temporary tax cuts enacted in the 2017 Tax Cuts and Jobs Act, which Trump signed into law during his first term. Democrats, meanwhile, remain opposed to the bill's massive cuts to Medicare and other measures that make it harder for people to claim tax credits meant to boost lower-income Americans' bottom lines. Rep. Brad Schneider, an Illnois Democrat, told the Times that the whole bill had to be considered rather than any individual provision or provisiosn. 'Any one thing — a tax credit or a tax cut — might make sense, but you've got to take a look at the whole picture,' he said.
