Summary
Trump warned automakers not to raise prices after announcing a 25% tariff on imported vehicles starting April 3, claiming the tariffs would be “great” and benefit U.S. manufacturing.
Industry leaders, including GM, Ford, and Stellantis CEOs, expressed concerns about inevitable price increases, with experts warning tariffs could add thousands to car costs.
Auto suppliers stated that absorbing tariffs is impossible, and dealers fear affordability challenges for consumers.
While the United Auto Workers union support the move as a job creator, trade groups predict higher prices and fewer manufacturing jobs.
The best they can do is probably close their Canadian/Mexican plants if the losses are too great, which would increase unemployment in those areas for not only the automotive factories, but also the ones for the automotive suppliers. Even if a Chinese company swoops in to buy the factories, it’d take time to set things up.