U.S. auto industry warns new auto parts tariffs will hike prices, cut sales

David Shepardson · Thomson Reuters

· Posted: Apr 23, 2025 7:29 AM EDT | Last Updated: 10 minutes ago

A conjugation of U.S. car manufacture groups urged President Donald Trump connected Tuesday not to enforce 25 per cent tariffs connected imported car parts, informing they would cut conveyance income and rise prices.

Trump said earlier helium plans to enforce tariffs of 25 per cent on car parts nary aboriginal than May 3.

"Tariffs connected car parts volition scramble the planetary automotive proviso concatenation and acceptable disconnected a domino effect that volition pb to higher car prices for consumers, little income astatine dealerships and volition marque servicing and repairing vehicles some much costly and little predictable," said the letter.

WATCH | Tariffs are 'going to clang the U.S. car sector,' says car parts relation president:

The missive from the groups representing General Motors, Toyota Motor, Volkswagen, Hyundai and others, went to U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent.

The authorities agencies did not instantly comment.

The missive was signed by the Alliance for Automotive Innovation, the commercialized radical representing astir each large automakers, the American Automotive Policy Council, representing the Detroit Three automakers, the National Automobile Dealers Association, arsenic good arsenic the Vehicle Suppliers Association, and others.

"Most car suppliers are not capitalized for an abrupt tariff induced disruption. Many are already successful distress and volition look accumulation stoppages, layoffs and bankruptcy," the missive added, noting "it lone takes the nonaccomplishment of 1 supplier to pb to a shutdown of an automaker's accumulation line."

On April 14, Trump said helium was considering a modification to the 25 per cent tariffs imposed connected overseas car and car parts imports from Mexico, Canada and different places.

Trump said car companies "need a small spot of clip due to the fact that they're going to marque 'em here."

Ford Motor said past week it whitethorn rise prices connected its caller vehicles if Trump's car tariffs continue.

An investigation by the Center for Automotive Research published earlier this period recovered Trump's 25 per cent tariffs connected automotive imports, implemented connected April 3, volition escalate costs for U.S. automakers by astir $108 cardinal successful 2025.