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- Tariffs have arrived: what automakers and experts feel
Tariffs have arrived: what automakers and experts feel
There's a lot of uncertainty around tariffs and the automotive industry. We explain what companies are feeling and what the possible outcome might be.
Issue #112
Happy Thursday! Tariffs are finally in place. There’s a lot of uncertainty and stress, but is it justified?
Today, we answer the question.
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In The Know
Tariffs on cars are here. Let's make sense of them.
There's no denying that Trump's tariffs on the automotive sector have been a prominent topic of conversation lately.
When he announced them, sales spiked as buyers rushed to purchase a new car before it became much more expensive.
Yet, it's also important to notice that, as this article (and interview) highlights, new vehicle sales have shown a steady increase in 2025.
The article we've shared is also interesting because it gives us an interesting insight into how Ford plans to tackle the changes within the industry, plus how the company's CEO, Jim Farley, views the Blue Oval in the future.
The spike in sales is an evident consequence of the tariffs' unclear implications. This uncertainty has us at Four Wheel Trends wanting to clarify the automotive industry's current status.
Unfortunately, not everything is clear regarding the possible impact of tariffs in the automotive market, and it has been this way for quite a while.
As this article explains, the uncertainty is such that dealerships have turned to artificial intelligence to navigate the changing times.
Not only that, but the automotive industry also planted its collective foot and pushed back on the tariffs.
As a response, the current administration eased back on tariffs by mixing credits and relief. This article explains how President Trump plans to soften the blow.
The government and the automotive industry agreed that this was a positive move. However, as expected, not all automakers feel the same impact.
One company that surprisingly teeters between a positive and a somewhat negative outlook is General Motors.
They've relied on foreign production for many of their vehicles. Now, as the CEO, Mary Barra, told Fox Business, the company is pushing to expand while keeping the prices steady, a delicate balance that will put the giant to the test.
On the other hand, perhaps unsurprisingly, Mercedes is an automaker struggling to keep up with changes.
That's even considering that the company produces many vehicles in the US. Here are some of its planned strategies.
Other analyses have shown that car production in the US could decrease, but no clear estimate of how long the impact will last.
After all, companies are moving back to the US, but these moves aren't immediate. In the meantime, we might see American automotive production take a hit.
There's the big question on everyone's mind: Will cars become much more expensive in the short run?
Most experts believe that, indeed, cars will become more expensive in the short run.
A team of Michigan-based experts calculated that the least-impacted cars will have around $2,000 tariffs, while the most-impacted vehicles will see tariffs of $15,000.
Cars in the "lower impact" tier include the Honda Civic, Toyota Camry Hybrid, and Ford Explorer, to name a few.
Here, you can learn more about the "medium impact" and "high impact" groups and the vehicles they include.
However, as the article explains, these estimations could be wrong, leaving plenty of uncertainty.
This criticism of the estimation is based on something called "destacking," where automakers don't have to pay all the tariffs imposed on them, instead choosing the most impactful one and paying it only once.
This is a smart move, as it benefits some of America's favorite vehicles. To learn more about them, read this article.
Overall, the sentiment is one of caution and acceptance. It's improbable that new car prices will remain steady. However, it might not mean a massive spike for everyone. It's all about the vehicles we choose to buy.
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