2025 GMC Yukon Denali price and specs
General Motors is gunning for the likes of the Lexus LX in Australia with the new 2025 GMC Yukon Denali.
Orders have opened for the full-size luxury SUV ahead of deliveries occurring over the third quarter of 2025..
It wears a price tag of $174,990 before on-road costs, with GM Australia and New Zealand confirming on April 15 it was raising the Yukon Denali's price by $5000 due to "ongoing foreign exchange rate volatility and cost increases".
This puts the V8-powered eight-seat SUV between entry-level and mid-range versions of the twin-turbo petrol V6-powered Lexus LX 600.
The Yukon Denali is being locally remanufactured to right-hand drive in Melbourne by Walkinshaw Automotive, like the Chevrolet Silverado pickup it's related to.
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
GM Specialty Vehicles (GMSV) has opted to bring in only a single trim of the Yukon: the Denali, which until recently was the fanciest member of the lineup.
In markets like the US, there's an even fancier Denali Ultimate that adds another eight speakers and massaging front seats, as well as unique interior trim.
You can also get an extended-wheelbase version of the Yukon called the Yukon XL, but that's not coming here.
The Yukon Denali is the first GMC vehicle that General Motors has brought to Australia.
It offers most of the luxury accoutrements of the Cadillac Escalade which GM has thus far opted not to bring here, instead confirming its flagship brand will sell only electric vehicles (EVs) in Australia.
GMC historically did little more than rebadge Chevrolet vehicles, but over the past several years GM has invested more in the brand to give its vehicles greater differentiation inside and out.
GM is taking its GMC brand – which has largely been limited to North America and the Middle East – to more markets around the globe. In addition to launching in Australia and New Zealand, it's also entering the Chinese market.
The Yukon Denali will be sold through the existing GMSV dealer network alongside the Chevrolet Silverado 1500, Silverado HD and Corvette.
There's just one engine on offer: a direct-injected, naturally aspirated 6.2-litre petrol V8 with cylinder deactivation.
The Yukon Denali rides on Air Ride adaptive suspension with GM's Magnetic Ride Control, adaptive suspension technology also used by brands like Ferrari, which features dampers with magnetorheological fluid.
Its Active Response four-wheel drive system includes an electronic limited-slip differential and a two-speed transfer case with 2WD Hi, 4WD Auto, 4WD Hi and 4WD Low modes.
GM says it has no plans at this stage to expand its warranty offering or introduce capped-price servicing.
The GMC Yukon has yet to be tested by ANCAP.
Standard safety equipment includes:
Standard equipment includes:
GMSV will offer a range of 25 accessories, including puddle lights and illuminated badges.
MORE: Why GM chose to bring yet another brand to AustraliaMORE: Everything GMC Yukon
Content originally sourced from: CarExpert.com.au
UPDATED 12/05/2025 12:00pm: GM Australia and New Zealand has confirmed aftersales information for the GMC Yukon Denali, which we've updated below, and our launch review is now live.
General Motors is gunning for the likes of the Lexus LX in Australia with the new 2025 GMC Yukon Denali.
Orders have opened for the full-size luxury SUV ahead of deliveries occurring over the third quarter of 2025..
It wears a price tag of $174,990 before on-road costs, with GM Australia and New Zealand confirming on April 15 it was raising the Yukon Denali's price by $5000 due to "ongoing foreign exchange rate volatility and cost increases".
This puts the V8-powered eight-seat SUV between entry-level and mid-range versions of the twin-turbo petrol V6-powered Lexus LX 600.
The Yukon Denali is being locally remanufactured to right-hand drive in Melbourne by Walkinshaw Automotive, like the Chevrolet Silverado pickup it's related to.
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
GM Specialty Vehicles (GMSV) has opted to bring in only a single trim of the Yukon: the Denali, which until recently was the fanciest member of the lineup.
In markets like the US, there's an even fancier Denali Ultimate that adds another eight speakers and massaging front seats, as well as unique interior trim.
You can also get an extended-wheelbase version of the Yukon called the Yukon XL, but that's not coming here.
The Yukon Denali is the first GMC vehicle that General Motors has brought to Australia.
It offers most of the luxury accoutrements of the Cadillac Escalade which GM has thus far opted not to bring here, instead confirming its flagship brand will sell only electric vehicles (EVs) in Australia.
GMC historically did little more than rebadge Chevrolet vehicles, but over the past several years GM has invested more in the brand to give its vehicles greater differentiation inside and out.
GM is taking its GMC brand – which has largely been limited to North America and the Middle East – to more markets around the globe. In addition to launching in Australia and New Zealand, it's also entering the Chinese market.
The Yukon Denali will be sold through the existing GMSV dealer network alongside the Chevrolet Silverado 1500, Silverado HD and Corvette.
There's just one engine on offer: a direct-injected, naturally aspirated 6.2-litre petrol V8 with cylinder deactivation.
The Yukon Denali rides on Air Ride adaptive suspension with GM's Magnetic Ride Control, adaptive suspension technology also used by brands like Ferrari, which features dampers with magnetorheological fluid.
Its Active Response four-wheel drive system includes an electronic limited-slip differential and a two-speed transfer case with 2WD Hi, 4WD Auto, 4WD Hi and 4WD Low modes.
GM says it has no plans at this stage to expand its warranty offering or introduce capped-price servicing.
The GMC Yukon has yet to be tested by ANCAP.
Standard safety equipment includes:
Standard equipment includes:
GMSV will offer a range of 25 accessories, including puddle lights and illuminated badges.
MORE: Why GM chose to bring yet another brand to AustraliaMORE: Everything GMC Yukon
Content originally sourced from: CarExpert.com.au
UPDATED 12/05/2025 12:00pm: GM Australia and New Zealand has confirmed aftersales information for the GMC Yukon Denali, which we've updated below, and our launch review is now live.
General Motors is gunning for the likes of the Lexus LX in Australia with the new 2025 GMC Yukon Denali.
Orders have opened for the full-size luxury SUV ahead of deliveries occurring over the third quarter of 2025..
It wears a price tag of $174,990 before on-road costs, with GM Australia and New Zealand confirming on April 15 it was raising the Yukon Denali's price by $5000 due to "ongoing foreign exchange rate volatility and cost increases".
This puts the V8-powered eight-seat SUV between entry-level and mid-range versions of the twin-turbo petrol V6-powered Lexus LX 600.
The Yukon Denali is being locally remanufactured to right-hand drive in Melbourne by Walkinshaw Automotive, like the Chevrolet Silverado pickup it's related to.
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
GM Specialty Vehicles (GMSV) has opted to bring in only a single trim of the Yukon: the Denali, which until recently was the fanciest member of the lineup.
In markets like the US, there's an even fancier Denali Ultimate that adds another eight speakers and massaging front seats, as well as unique interior trim.
You can also get an extended-wheelbase version of the Yukon called the Yukon XL, but that's not coming here.
The Yukon Denali is the first GMC vehicle that General Motors has brought to Australia.
It offers most of the luxury accoutrements of the Cadillac Escalade which GM has thus far opted not to bring here, instead confirming its flagship brand will sell only electric vehicles (EVs) in Australia.
GMC historically did little more than rebadge Chevrolet vehicles, but over the past several years GM has invested more in the brand to give its vehicles greater differentiation inside and out.
GM is taking its GMC brand – which has largely been limited to North America and the Middle East – to more markets around the globe. In addition to launching in Australia and New Zealand, it's also entering the Chinese market.
The Yukon Denali will be sold through the existing GMSV dealer network alongside the Chevrolet Silverado 1500, Silverado HD and Corvette.
There's just one engine on offer: a direct-injected, naturally aspirated 6.2-litre petrol V8 with cylinder deactivation.
The Yukon Denali rides on Air Ride adaptive suspension with GM's Magnetic Ride Control, adaptive suspension technology also used by brands like Ferrari, which features dampers with magnetorheological fluid.
Its Active Response four-wheel drive system includes an electronic limited-slip differential and a two-speed transfer case with 2WD Hi, 4WD Auto, 4WD Hi and 4WD Low modes.
GM says it has no plans at this stage to expand its warranty offering or introduce capped-price servicing.
The GMC Yukon has yet to be tested by ANCAP.
Standard safety equipment includes:
Standard equipment includes:
GMSV will offer a range of 25 accessories, including puddle lights and illuminated badges.
MORE: Why GM chose to bring yet another brand to AustraliaMORE: Everything GMC Yukon
Content originally sourced from: CarExpert.com.au
UPDATED 12/05/2025 12:00pm: GM Australia and New Zealand has confirmed aftersales information for the GMC Yukon Denali, which we've updated below, and our launch review is now live.
General Motors is gunning for the likes of the Lexus LX in Australia with the new 2025 GMC Yukon Denali.
Orders have opened for the full-size luxury SUV ahead of deliveries occurring over the third quarter of 2025..
It wears a price tag of $174,990 before on-road costs, with GM Australia and New Zealand confirming on April 15 it was raising the Yukon Denali's price by $5000 due to "ongoing foreign exchange rate volatility and cost increases".
This puts the V8-powered eight-seat SUV between entry-level and mid-range versions of the twin-turbo petrol V6-powered Lexus LX 600.
The Yukon Denali is being locally remanufactured to right-hand drive in Melbourne by Walkinshaw Automotive, like the Chevrolet Silverado pickup it's related to.
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
GM Specialty Vehicles (GMSV) has opted to bring in only a single trim of the Yukon: the Denali, which until recently was the fanciest member of the lineup.
In markets like the US, there's an even fancier Denali Ultimate that adds another eight speakers and massaging front seats, as well as unique interior trim.
You can also get an extended-wheelbase version of the Yukon called the Yukon XL, but that's not coming here.
The Yukon Denali is the first GMC vehicle that General Motors has brought to Australia.
It offers most of the luxury accoutrements of the Cadillac Escalade which GM has thus far opted not to bring here, instead confirming its flagship brand will sell only electric vehicles (EVs) in Australia.
GMC historically did little more than rebadge Chevrolet vehicles, but over the past several years GM has invested more in the brand to give its vehicles greater differentiation inside and out.
GM is taking its GMC brand – which has largely been limited to North America and the Middle East – to more markets around the globe. In addition to launching in Australia and New Zealand, it's also entering the Chinese market.
The Yukon Denali will be sold through the existing GMSV dealer network alongside the Chevrolet Silverado 1500, Silverado HD and Corvette.
There's just one engine on offer: a direct-injected, naturally aspirated 6.2-litre petrol V8 with cylinder deactivation.
The Yukon Denali rides on Air Ride adaptive suspension with GM's Magnetic Ride Control, adaptive suspension technology also used by brands like Ferrari, which features dampers with magnetorheological fluid.
Its Active Response four-wheel drive system includes an electronic limited-slip differential and a two-speed transfer case with 2WD Hi, 4WD Auto, 4WD Hi and 4WD Low modes.
GM says it has no plans at this stage to expand its warranty offering or introduce capped-price servicing.
The GMC Yukon has yet to be tested by ANCAP.
Standard safety equipment includes:
Standard equipment includes:
GMSV will offer a range of 25 accessories, including puddle lights and illuminated badges.
MORE: Why GM chose to bring yet another brand to AustraliaMORE: Everything GMC Yukon
Content originally sourced from: CarExpert.com.au
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Advertiser
4 days ago
- The Advertiser
GM blames Trump's tariffs for billion-dollar loss, warns larger losses on the way
General Motors (GM) has announced a $A1.68 billion loss for the second quarter (April-June) of 2025, citing uncertainty brought on by United States (US) import tariffs. In its quarterly earnings call, the automaker pinned the entire $US1.1 billion loss down to the automotive import tariffs introduced from April 2, 2025, which extended to components in May before being combined with broader 'reciprocal' tariffs. In its presentation, GM told shareholders to, "Expect Q3 [July-September] impact to be higher than Q2 due to timing of indirect tariff costs." "We are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape," said GM CEO Mary Barra in a letter to shareholders. CarExpert can save you thousands on a new car. Click here to get a great deal. The loss is 32 per cent down on the same period in 2024, with the company's revenue falling three per cent year-on-year. With 746,588 vehicles sold between April and June, GM was the best-selling automaker in the US in the first half of 2025 with 1.4 million deliveries across its Buick, Cadillac, Chevrolet and GMC brands. Ms Barra also highlighted the $US4 million ($A6.9 billion) investment in US manufacturing, bringing an additional 300,000 vehicle production capacity. "This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models," Ms Barra said. "The capacity begins coming online in just 18 months, after which we project building more than two million vehicles in the U.S. each year as we scale." This included a US$888 million (A$1.377 billion) investment in the development of a sixth-generation small-block V8 engine at the Tonawanda Propulsion plant in Buffalo, New York. "Overall, GM is well positioned to succeed in an ICE [internal combustion engine] market that now has a longer runway," Ms Barra said. The news comes as rival Stellantis, which owns US brands including Jeep, Ram Trucks, Dodge, Chrysler among others, posted a €2.3 billion (A$4.1 billion) loss for the first six months of 2025 after a profit of €5.6 billion (A$10 billion) over the same period last year. In April, US President Donald Trump introduced 'automotive' tariffs of 25 per cent on imported vehicles, controversially including Mexico and Canada – crucial parts of a broader North American supply chain – despite GM, Ford and Stellantis asking for more time to adjust to the tariffs. Mr Trump relented somewhat, providing a one-month reprieve on tariffs for vehicles built in Canada – such as the Chevrolet Silverado – and Mexico, where Stellantis makes vehicles such as the Jeep Wagoneer S. In May, a tariff on components was also applied, which was also layered with country-specific 'reciprocal' tariffs, meaning tariffs on materials – such as imported steel – would attract additional tariffs. Analysts predicted the average cost of a new vehicle could increase by as much as $US12,000 ($A18,250), while President Trump said the tariffs were intended to grow US manufacturing. "Ultimately, more production at home will mean stronger competition and lower prices for consumers," President Trump told media in a press conference announcing the tariffs on April 2, 2025. GM says average transaction prices have increased to $US51,000 ($A77,570) and expects to raise prices between 0.5-1.0 per cent this year. MORE: Peugeot, Ram parent posts A$4.1 billion loss, forecasts more tariff trouble MORE: Reciprocal tariffs on US trading partners will have 'ripple effects' on Australia Content originally sourced from: General Motors (GM) has announced a $A1.68 billion loss for the second quarter (April-June) of 2025, citing uncertainty brought on by United States (US) import tariffs. In its quarterly earnings call, the automaker pinned the entire $US1.1 billion loss down to the automotive import tariffs introduced from April 2, 2025, which extended to components in May before being combined with broader 'reciprocal' tariffs. In its presentation, GM told shareholders to, "Expect Q3 [July-September] impact to be higher than Q2 due to timing of indirect tariff costs." "We are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape," said GM CEO Mary Barra in a letter to shareholders. CarExpert can save you thousands on a new car. Click here to get a great deal. The loss is 32 per cent down on the same period in 2024, with the company's revenue falling three per cent year-on-year. With 746,588 vehicles sold between April and June, GM was the best-selling automaker in the US in the first half of 2025 with 1.4 million deliveries across its Buick, Cadillac, Chevrolet and GMC brands. Ms Barra also highlighted the $US4 million ($A6.9 billion) investment in US manufacturing, bringing an additional 300,000 vehicle production capacity. "This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models," Ms Barra said. "The capacity begins coming online in just 18 months, after which we project building more than two million vehicles in the U.S. each year as we scale." This included a US$888 million (A$1.377 billion) investment in the development of a sixth-generation small-block V8 engine at the Tonawanda Propulsion plant in Buffalo, New York. "Overall, GM is well positioned to succeed in an ICE [internal combustion engine] market that now has a longer runway," Ms Barra said. The news comes as rival Stellantis, which owns US brands including Jeep, Ram Trucks, Dodge, Chrysler among others, posted a €2.3 billion (A$4.1 billion) loss for the first six months of 2025 after a profit of €5.6 billion (A$10 billion) over the same period last year. In April, US President Donald Trump introduced 'automotive' tariffs of 25 per cent on imported vehicles, controversially including Mexico and Canada – crucial parts of a broader North American supply chain – despite GM, Ford and Stellantis asking for more time to adjust to the tariffs. Mr Trump relented somewhat, providing a one-month reprieve on tariffs for vehicles built in Canada – such as the Chevrolet Silverado – and Mexico, where Stellantis makes vehicles such as the Jeep Wagoneer S. In May, a tariff on components was also applied, which was also layered with country-specific 'reciprocal' tariffs, meaning tariffs on materials – such as imported steel – would attract additional tariffs. Analysts predicted the average cost of a new vehicle could increase by as much as $US12,000 ($A18,250), while President Trump said the tariffs were intended to grow US manufacturing. "Ultimately, more production at home will mean stronger competition and lower prices for consumers," President Trump told media in a press conference announcing the tariffs on April 2, 2025. GM says average transaction prices have increased to $US51,000 ($A77,570) and expects to raise prices between 0.5-1.0 per cent this year. MORE: Peugeot, Ram parent posts A$4.1 billion loss, forecasts more tariff trouble MORE: Reciprocal tariffs on US trading partners will have 'ripple effects' on Australia Content originally sourced from: General Motors (GM) has announced a $A1.68 billion loss for the second quarter (April-June) of 2025, citing uncertainty brought on by United States (US) import tariffs. In its quarterly earnings call, the automaker pinned the entire $US1.1 billion loss down to the automotive import tariffs introduced from April 2, 2025, which extended to components in May before being combined with broader 'reciprocal' tariffs. In its presentation, GM told shareholders to, "Expect Q3 [July-September] impact to be higher than Q2 due to timing of indirect tariff costs." "We are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape," said GM CEO Mary Barra in a letter to shareholders. CarExpert can save you thousands on a new car. Click here to get a great deal. The loss is 32 per cent down on the same period in 2024, with the company's revenue falling three per cent year-on-year. With 746,588 vehicles sold between April and June, GM was the best-selling automaker in the US in the first half of 2025 with 1.4 million deliveries across its Buick, Cadillac, Chevrolet and GMC brands. Ms Barra also highlighted the $US4 million ($A6.9 billion) investment in US manufacturing, bringing an additional 300,000 vehicle production capacity. "This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models," Ms Barra said. "The capacity begins coming online in just 18 months, after which we project building more than two million vehicles in the U.S. each year as we scale." This included a US$888 million (A$1.377 billion) investment in the development of a sixth-generation small-block V8 engine at the Tonawanda Propulsion plant in Buffalo, New York. "Overall, GM is well positioned to succeed in an ICE [internal combustion engine] market that now has a longer runway," Ms Barra said. The news comes as rival Stellantis, which owns US brands including Jeep, Ram Trucks, Dodge, Chrysler among others, posted a €2.3 billion (A$4.1 billion) loss for the first six months of 2025 after a profit of €5.6 billion (A$10 billion) over the same period last year. In April, US President Donald Trump introduced 'automotive' tariffs of 25 per cent on imported vehicles, controversially including Mexico and Canada – crucial parts of a broader North American supply chain – despite GM, Ford and Stellantis asking for more time to adjust to the tariffs. Mr Trump relented somewhat, providing a one-month reprieve on tariffs for vehicles built in Canada – such as the Chevrolet Silverado – and Mexico, where Stellantis makes vehicles such as the Jeep Wagoneer S. In May, a tariff on components was also applied, which was also layered with country-specific 'reciprocal' tariffs, meaning tariffs on materials – such as imported steel – would attract additional tariffs. Analysts predicted the average cost of a new vehicle could increase by as much as $US12,000 ($A18,250), while President Trump said the tariffs were intended to grow US manufacturing. "Ultimately, more production at home will mean stronger competition and lower prices for consumers," President Trump told media in a press conference announcing the tariffs on April 2, 2025. GM says average transaction prices have increased to $US51,000 ($A77,570) and expects to raise prices between 0.5-1.0 per cent this year. MORE: Peugeot, Ram parent posts A$4.1 billion loss, forecasts more tariff trouble MORE: Reciprocal tariffs on US trading partners will have 'ripple effects' on Australia Content originally sourced from: General Motors (GM) has announced a $A1.68 billion loss for the second quarter (April-June) of 2025, citing uncertainty brought on by United States (US) import tariffs. In its quarterly earnings call, the automaker pinned the entire $US1.1 billion loss down to the automotive import tariffs introduced from April 2, 2025, which extended to components in May before being combined with broader 'reciprocal' tariffs. In its presentation, GM told shareholders to, "Expect Q3 [July-September] impact to be higher than Q2 due to timing of indirect tariff costs." "We are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape," said GM CEO Mary Barra in a letter to shareholders. CarExpert can save you thousands on a new car. Click here to get a great deal. The loss is 32 per cent down on the same period in 2024, with the company's revenue falling three per cent year-on-year. With 746,588 vehicles sold between April and June, GM was the best-selling automaker in the US in the first half of 2025 with 1.4 million deliveries across its Buick, Cadillac, Chevrolet and GMC brands. Ms Barra also highlighted the $US4 million ($A6.9 billion) investment in US manufacturing, bringing an additional 300,000 vehicle production capacity. "This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models," Ms Barra said. "The capacity begins coming online in just 18 months, after which we project building more than two million vehicles in the U.S. each year as we scale." This included a US$888 million (A$1.377 billion) investment in the development of a sixth-generation small-block V8 engine at the Tonawanda Propulsion plant in Buffalo, New York. "Overall, GM is well positioned to succeed in an ICE [internal combustion engine] market that now has a longer runway," Ms Barra said. The news comes as rival Stellantis, which owns US brands including Jeep, Ram Trucks, Dodge, Chrysler among others, posted a €2.3 billion (A$4.1 billion) loss for the first six months of 2025 after a profit of €5.6 billion (A$10 billion) over the same period last year. In April, US President Donald Trump introduced 'automotive' tariffs of 25 per cent on imported vehicles, controversially including Mexico and Canada – crucial parts of a broader North American supply chain – despite GM, Ford and Stellantis asking for more time to adjust to the tariffs. Mr Trump relented somewhat, providing a one-month reprieve on tariffs for vehicles built in Canada – such as the Chevrolet Silverado – and Mexico, where Stellantis makes vehicles such as the Jeep Wagoneer S. In May, a tariff on components was also applied, which was also layered with country-specific 'reciprocal' tariffs, meaning tariffs on materials – such as imported steel – would attract additional tariffs. Analysts predicted the average cost of a new vehicle could increase by as much as $US12,000 ($A18,250), while President Trump said the tariffs were intended to grow US manufacturing. "Ultimately, more production at home will mean stronger competition and lower prices for consumers," President Trump told media in a press conference announcing the tariffs on April 2, 2025. GM says average transaction prices have increased to $US51,000 ($A77,570) and expects to raise prices between 0.5-1.0 per cent this year. MORE: Peugeot, Ram parent posts A$4.1 billion loss, forecasts more tariff trouble MORE: Reciprocal tariffs on US trading partners will have 'ripple effects' on Australia Content originally sourced from:
Sydney Morning Herald
5 days ago
- Sydney Morning Herald
Trump sparks a $6.4 billion wipeout for a US icon
GM says it believes it can eventually offset about a third of the $US4 billion to $US5 billion cost of the tariffs this year by cutting costs and shifting some production to the US. That suggests that the ongoing cost of the tariffs in the near term will be more than $US3.3 billion a year, although GM executives are hopeful that trade deals with South Korea, Mexico and Canada – where most of its imported cars are sourced – may reduce that cost. As this quarterly earnings season in the US continues, the commentaries from trade-exposed US companies will be pored over for references to the tariffs and how the companies are responding to them. Last week's June inflation data showed that in sectors directly exposed to tariffs – sectors like fresh fruit and vegetables, household appliances, furniture, toys, clothing and sporting goods – prices are rising. The cost of the tariffs in those sectors is being passed onto customers and is impacting the inflation rate. There's been a lot of inventory loading occurring in the US to get in ahead of the tariffs, so their impact on the inflation rate and/or companies' profits should progressively increase as those pre-tariff stocks run down. Loading There are some companies, of course, who benefit from the protection provided by tariffs, which shield them to some degree from competition from imports and where the increased cost of imports provides cover for domestic firms to raise their own prices. The US steel industry, with aluminium, was one of the earliest beneficiaries of Trump's tariffs. Trump announced a 25 per cent tariff on steel and aluminium imports in February and then doubled the rate, to 50 per cent, last month. About 23 per cent of the steel supply in the US is imported, with the rest produced domestically by steelmakers that are regarded as the world's most expensive producers. Their response to Trump's tariffs has, predictably, been opportunistic. They've raised their prices, which are up about 16 per cent this year. That's history repeating. In 2018, during Trump's initial trade war with China, he imposed a 25 per cent tariff on steel imports and the US steelmakers responded by lifting their prices by about 10 per cent, which added about $US2.5 billion to their profits. The 2018 experience shows the companies also improved their capacity utilisation and added investment and jobs – but the impact was relatively short-lived and the costs in jobs and lost earnings to steel-consuming industries were multiples of the benefits created for the steel producers. Not only is the duty on steel today double what it was in 2018, but it applies more broadly, not just to imported steel, but imports of steel 'derivatives,' or products where steel is a major component. The impact on the tariff on steel – and similar tariffs on aluminium and copper – will percolate through the US manufacturing sector, with a particular impact on an auto industry that is also subject to its own tariffs. If Trump follows through with his threatened 50 per cent tariff on all imports from Brazil (unless Brazilian authorities drops their prosecution of former president Jair Bolsonaro for an alleged attempted coup), the tariffs' impact on the cost of steel would be exacerbated. Brazil is a major supplier of raw materials to the sector. At some point, probably not too far into the distant future, GM and other US manufacturers will be overwhelmed by the cost increases flowing from the barrage of tariffs on auto and auto part imports and on their raw materials and unable to absorb them without passing on a substantial proportion of them to customers. That is when their full effects on the inflation rate will start to show up. The 'Trump effect' on the auto industry isn't confined to tariffs. His aversion to electric vehicles and climate-related initiatives and his assault on the Biden's administration's subsidies and incentives for carbon emission reductions and green energy includes the withdrawal of subsidies for EV purchases and tax credits for emissions reductions. That will hit Tesla, which has relied on the sale of the regulatory credits for its profitability – it would be loss-making without them – hardest. While Trump keeps claiming that the US is collecting massive amounts of tariff revenue from other countries' exporters, the GM experience underscores what almost everyone else has always understood. It might, in the near term, help other US EV manufacturers, even GM – the second-largest US domestic manufacturer of EVs – which have had to buy the credits to offset the emissions from their larger internal combustion vehicle production. What it and, thanks to tariff and non-tariff barriers, the near-total absence of competition from imported EVs will do, however, is drive up the cost of domestically produced EVs, reduce their sales volumes and undermine the scale efficiencies that might lead to EV profitability. Loading GM more than doubled its sales of EVs in the June quarter relative to the same quarter last year. In the near term reduced EV sales and losses might help blunt the effect of Trump's tariffs. In the longer term his policies will leave the GM and the US even further behind the global shift towards EVs and the electrification of energy and transport. Supposedly, the tariffs and the unwinding of Biden's green energy initiatives are going to help make America great again... .
The Age
5 days ago
- The Age
Trump sparks a $6.4 billion wipeout for a US icon
GM says it believes it can eventually offset about a third of the $US4 billion to $US5 billion cost of the tariffs this year by cutting costs and shifting some production to the US. That suggests that the ongoing cost of the tariffs in the near term will be more than $US3.3 billion a year, although GM executives are hopeful that trade deals with South Korea, Mexico and Canada – where most of its imported cars are sourced – may reduce that cost. As this quarterly earnings season in the US continues, the commentaries from trade-exposed US companies will be pored over for references to the tariffs and how the companies are responding to them. Last week's June inflation data showed that in sectors directly exposed to tariffs – sectors like fresh fruit and vegetables, household appliances, furniture, toys, clothing and sporting goods – prices are rising. The cost of the tariffs in those sectors is being passed onto customers and is impacting the inflation rate. There's been a lot of inventory loading occurring in the US to get in ahead of the tariffs, so their impact on the inflation rate and/or companies' profits should progressively increase as those pre-tariff stocks run down. Loading There are some companies, of course, who benefit from the protection provided by tariffs, which shield them to some degree from competition from imports and where the increased cost of imports provides cover for domestic firms to raise their own prices. The US steel industry, with aluminium, was one of the earliest beneficiaries of Trump's tariffs. Trump announced a 25 per cent tariff on steel and aluminium imports in February and then doubled the rate, to 50 per cent, last month. About 23 per cent of the steel supply in the US is imported, with the rest produced domestically by steelmakers that are regarded as the world's most expensive producers. Their response to Trump's tariffs has, predictably, been opportunistic. They've raised their prices, which are up about 16 per cent this year. That's history repeating. In 2018, during Trump's initial trade war with China, he imposed a 25 per cent tariff on steel imports and the US steelmakers responded by lifting their prices by about 10 per cent, which added about $US2.5 billion to their profits. The 2018 experience shows the companies also improved their capacity utilisation and added investment and jobs – but the impact was relatively short-lived and the costs in jobs and lost earnings to steel-consuming industries were multiples of the benefits created for the steel producers. Not only is the duty on steel today double what it was in 2018, but it applies more broadly, not just to imported steel, but imports of steel 'derivatives,' or products where steel is a major component. The impact on the tariff on steel – and similar tariffs on aluminium and copper – will percolate through the US manufacturing sector, with a particular impact on an auto industry that is also subject to its own tariffs. If Trump follows through with his threatened 50 per cent tariff on all imports from Brazil (unless Brazilian authorities drops their prosecution of former president Jair Bolsonaro for an alleged attempted coup), the tariffs' impact on the cost of steel would be exacerbated. Brazil is a major supplier of raw materials to the sector. At some point, probably not too far into the distant future, GM and other US manufacturers will be overwhelmed by the cost increases flowing from the barrage of tariffs on auto and auto part imports and on their raw materials and unable to absorb them without passing on a substantial proportion of them to customers. That is when their full effects on the inflation rate will start to show up. The 'Trump effect' on the auto industry isn't confined to tariffs. His aversion to electric vehicles and climate-related initiatives and his assault on the Biden's administration's subsidies and incentives for carbon emission reductions and green energy includes the withdrawal of subsidies for EV purchases and tax credits for emissions reductions. That will hit Tesla, which has relied on the sale of the regulatory credits for its profitability – it would be loss-making without them – hardest. While Trump keeps claiming that the US is collecting massive amounts of tariff revenue from other countries' exporters, the GM experience underscores what almost everyone else has always understood. It might, in the near term, help other US EV manufacturers, even GM – the second-largest US domestic manufacturer of EVs – which have had to buy the credits to offset the emissions from their larger internal combustion vehicle production. What it and, thanks to tariff and non-tariff barriers, the near-total absence of competition from imported EVs will do, however, is drive up the cost of domestically produced EVs, reduce their sales volumes and undermine the scale efficiencies that might lead to EV profitability. Loading GM more than doubled its sales of EVs in the June quarter relative to the same quarter last year. In the near term reduced EV sales and losses might help blunt the effect of Trump's tariffs. In the longer term his policies will leave the GM and the US even further behind the global shift towards EVs and the electrification of energy and transport. Supposedly, the tariffs and the unwinding of Biden's green energy initiatives are going to help make America great again... .
