Suppliers
President Donald Trump was asked whether he warned foreign automaker CEOs not to raise consumer prices in response to the 25 percent tariffs he plans to impose on their products. “No, I never said that,” Trump said.
Analysts say that automakers will most likely absorb some of the higher tariff costs, dealers may see a hit to profitability and consumers will pay the rest. But exactly how that’s all balanced out is anyone’s guess at this point.
Alliance for Automotive Innovation CEO John Bozzella: “Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the U.S. and reduce U.S. auto exports — all before any new manufacturing or jobs are created in this country."
U.S. car dealers know they have a significant short-term opportunity in the coming days to sell imported vehicles before tariffs boost sticker prices.
Taiwanese automotive supplier TYC Americas plans to move its manufacturing from East Asia to Wixom, Mich., 33 miles west of Detroit, investing $18.8 million and creating 109 jobs.
Prime Minister Mark Carney said trade talks “will intensify to address immediate concerns.”
New tariffs will affect every corner of the auto industry. Automakers, dealers and suppliers worry about exorbitant costs, vehicle price increases and maintaining global competitiveness.
The two automakers produced more than two thirds of the 1.4-million vehicles assembled in Canada last year.
President Trump’s tariffs on auto imports set to take effect April 3 are expected to raise new-car sticker prices across the industry. The effects could be particularly pronounced at the low end of the market.
Buy-Canadian movements have sprouted and withered in the past. There are reasons to think this time will be different.
