{"id":18149,"date":"2025-04-08T15:56:04","date_gmt":"2025-04-08T15:56:04","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/trumps-tariffs-are-already-reducing-car-imports-and-idling-factories\/"},"modified":"2025-04-08T15:56:04","modified_gmt":"2025-04-08T15:56:04","slug":"trumps-tariffs-are-already-reducing-car-imports-and-idling-factories","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/trumps-tariffs-are-already-reducing-car-imports-and-idling-factories\/","title":{"rendered":"Trump\u2019s Tariffs Are Already Reducing Car Imports and Idling Factories"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">President Trump\u2019s 25 percent tariffs on imported vehicles, which went into effect last week, are already sending tremors through the auto industry, prompting companies to stop shipping cars to the United States, shut down factories in Canada and Mexico and lay off workers in Michigan and other states.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Jaguar Land Rover, based in Britain, said it would temporarily stop exporting its luxury cars to the United States. Stellantis idled factories in Canada and Mexico that make Chrysler and Jeep vehicles and laid off 900 U.S. workers who supply those factories with engines and other parts.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Audi, the luxury division of Volkswagen, also paused exports of cars to the United States from Europe, telling dealers to sell whatever they still had on their lots.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If other carmakers make similar moves, the economic impact could be severe, leading to higher car prices and widespread layoffs. The tariffs on cars are among the first of several industry-specific levies that Mr. Trump has in his sights and could offer early clues about how businesses will respond to his trade policies, including whether they raise prices or increase manufacturing in the United States. The president has said he also wants to tax the imports of <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/04\/health\/drug-tariffs-trump-manufacturing.html\" title=\"\">medicines<\/a> and computer chips.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Applying the new tariff to imported cars could increase their cost to consumers by thousands of dollars, sharply reducing demand for those vehicles. For some Jaguar Land Rover or Audi models, the tariffs could amount to more than $20,000 per car.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">While much of the initial impact of the tariffs has been disruptive, in at least one case Mr. Trump\u2019s duties have had the intended effect of increasing production in the United States. General Motors said late last week that it would increase production of light trucks at a factory in Fort Wayne, Ind.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The longer-term impact of the 25 percent tariffs is unclear. Many automakers are still trying to figure out how to avoid increasing prices so much that consumers can no longer afford new cars. Investors are pessimistic. Shares of Ford Motor, G.M. and Tesla have fallen in the past several days of trading.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cEveryone in the automotive supply chain is focused on what they can do to minimize the tariff impact to their own balance sheets and to prices,\u201d said Kevin Roberts, director of economic and market intelligence at CarGurus, an online shopping site.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But carmakers have never before had to deal with the imposition of such high tariffs with such little notice. Nor have they had as little insight into what the president will do next, analysts and dealers said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe traditional playbook is not enough,\u201d said Lenny LaRocca, who leads the auto industry team at the consulting firm KPMG.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. LaRocca predicted that automakers would increasingly focus on producing larger, heavier sport utility vehicles and pickup trucks. Those vehicles, many of which are assembled in U.S. factories, are usually the most profitable and give companies more room to absorb the cost of tariffs rather than passing it on to customers.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Many modern assembly lines are able to produce several models, giving companies flexibility to shift to the most profitable vehicles and to abandon vehicles that don\u2019t make as much money. Mercedes-Benz has said it will take advantage of flexible assembly lines at its factory in Alabama.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">This strategy comes with downsides. It may be harder for car buyers to find moderately priced new cars. Already, the average price of a new car is almost $50,000.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Analysts say that this much is clear: Tariffs will not prompt companies to open new factories or reopen closed plants right away. Companies won\u2019t take that expensive step until they are sure that the tariffs are permanent and that investing hundreds of millions \u2014 or billions \u2014 of dollars in new production capacity will pay off.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cI haven\u2019t seen any big moves,\u201d Mr. LaRocca said. \u201cIt\u2019s wait and see.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Some carmakers and suppliers expanded their U.S. operations before Mr. Trump took office. Often, they were reacting to the coronavirus pandemic, when it became risky to rely on distant factories for critical parts. Others made big investments in factories that make electric vehicles or E.V. batteries to take advantage of incentives offered by the Biden administration.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">ZF, a German parts maker, spent $500 million last year to expand a factory in South Carolina that produces transmissions for BMW and other automakers. And in recent years G.M. has opened two new U.S. battery factories with a South Korean partner, LG Energy Solution, to make the most important component of electric vehicles.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In the short run, some foreign carmakers may simply stop sending vehicles to the United States, either because they can no longer make a profit or because they can make more money elsewhere. That may be the case with Jaguar Land Rover. The company, known for luxury sport utility vehicles made in Britain, sells about one-fifth of its cars in the United States.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If other companies stop selling certain models to Americans, consumers will have fewer vehicles to choose from and the remaining automakers will have more leeway to raise prices.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">So far, however, the tariffs have not led to widespread price increases for new cars. Hyundai Motor said last week that it would not raise the manufacturer\u2019s suggested retail price of Hyundai and Genesis cars until June 2.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Of course, car dealers can raise prices even if an automaker pledges not to. That happened a lot during the pandemic, when the supply of new vehicles was limited by shortages of computer chips and other parts.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Dealers and automakers have reported brisk sales in recent days as people have rushed to buy vehicles before the tariffs took effect. The average time that a vehicle spent on the lot fell from 77 days at the end of January to fewer than 50 days at the beginning of April, according to CarGurus.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Demand has been especially high for Japanese brands like Honda, Subaru and Nissan, apparently because buyers assume they are imported, said Sean Hogan, the vice president of Sierra Auto Group, which owns a dozen dealerships in Southern California. All three Japanese companies have factories in the United States, though they do import some cars.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Another tariff shock will come on May 3, when the Trump administration will apply tariffs to auto parts. That means that even cars made in the United States will be affected because virtually all vehicles contain components from abroad. Repairs will also become more expensive.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe educated public is definitely making some moves to get ahead of the tariffs, which I think is smart,\u201d Mr. Hogan said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But the long-term impact of Mr. Trump\u2019s trade policies is still impossible to predict, he said. \u201cThis administration moves pretty fast, and you really don\u2019t know what\u2019s going to happen next,\u201d Mr. Hogan added. \u201cBuckle up.\u201d<\/p>\n<p class=\"css-798hid etfikam0\">Neal E. Boudette<!-- --> and <!-- -->Melissa Eddy<!-- --> contributed reporting.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/04\/08\/business\/trump-tariffs-cars-auto-industry.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Trump\u2019s 25 percent tariffs on imported vehicles, which went into effect last week, are already sending tremors through the<\/p>\n","protected":false},"author":1,"featured_media":18150,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[5713,332,754,239,114,329,335,135,877,949,5714,338,5715,413,134,1480,1442,113,111],"class_list":["post-18149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-audi-division-of-volkswagen-ag","tag-automobiles","tag-canada","tag-customs-tariff","tag-donald-j","tag-electric-and-hybrid-vehicles","tag-factories-and-manufacturing","tag-fees-and-rates","tag-general-motors","tag-great-britain","tag-hyundai-motor-co","tag-international-trade-and-world-market","tag-jaguar-land-rover","tag-mexico","tag-prices-fares","tag-stellantis-nv","tag-supply-chain","tag-trump","tag-united-states-politics-and-government"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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