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New Straits Times
23-04-2025
- Automotive
- New Straits Times
Trump to exempt carmakers from some US tariffs
US President Donald Trump is planning to spare carmakers from some tariffs following intense lobbying by industry executives over recent weeks, the Financial Times reported on Wednesday, citing a couple of people familiar with the matter. The report said that Trump could exempt tariffs on car parts coming from China while also levying duties on imported steel and aluminium. The exemptions, however, would leave in place the 25 per cent tariff Trump imposed on all imports of foreign-made cars. The 25 per cent duty on foreign-imported car parts, which is due to take effect on 3 May, is also expected to continue, according to the report. The White House and the big three automakers did not immediately respond to Reuters' requests for comment. The development comes as US automakers scramble to find ways to tackle Trump's on-again, off-again tariffs, which are expected to raise car prices in the country, dent profits of carmakers and parts suppliers, and disrupt long-stretched supply chains. The Centre for Automotive Research published an analysis earlier this month saying that Trump's 25 per cent tariffs on automotive imports will escalate costs for automakers by about US$108 billion in 2025. Tesla, earlier in April, suspended plans to ship components from China for its Cybercab and Semi electric trucks to the United States in light of rising tariffs, a person familiar with the matter told Reuters. This impacts the company's plan to start mass production of its much-anticipated models. Ford last week said it halted shipments of some of its vehicles to China, as it started facing the heat from retaliatory tariffs that have made vehicles face taxes as high as 150 per cent.
Khaleej Times
11-04-2025
- Automotive
- Khaleej Times
Trump's auto tariffs could cost US automakers $108 billion, says study
A new analysis by the Centre for Automotive Research has found that President Donald Trump's 25% auto tariffs imposed in early April will increase costs by about $108 billion for automakers in the US in 2025. The study, released on Thursday by the Ann Arbor, Michigan-based organization, found Detroit automakers Ford Motor , General Motors and Stellantis, maker of Jeeps and Ram trucks, specifically will see increased costs of $42 billion. The study found the Detroit Three could see tariffs of nearly $5,000 for the parts they import on average for each car produced in the US, and about $8,600 on average for each car they import. Trump's 25% automotive import tariffs took effect April 3, causing shock waves across the industry since supplies come from all over the world. Vehicles made in Mexico and Canada face the levy, but automakers compliant with the terms of the US-Mexico-Canada Agreement can deduct the value of US content. The tariffs have pushed automakers to make production changes, with GM increasing truck output at an Indiana plant and Stellantis temporarily shutting down production at a plant in Mexico and one in Canada. These moves affected five US facilities that are connected to them. The study estimates the Detroit Three automakers will see an average cost of the tariff per vehicle for imported vehicle parts of $4,911, higher than the overall industry's average of $4,239 per vehicle. For imported vehicles, the study found the average tariff cost per vehicle to be $8,722 for the overall industry and $8,641 for the Detroit Three.
