Car giants answer Trump tariffs with price hikes and layoffs

The employee installs the VW logo on a new Volkswagen Tiguan at the main VW factory.
Photo alliance Photo alliance Gety pictures
The car giants have responded to the American president Donald Trump‘s Definitions By announcing plans to raise prices, imposing import fees, stopping production, and even setting employees.
As part of plans designed to transfer production to American factories and promote US jobs, the Trump administration on Thursday foot 25 % tariffs on foreign car imports. The White House also said it intends to put a tariff on some car parts no later than May 3.
Measures that were separate from Trump The new customs duties are sweeping On the main commercial partners, the global automotive industry was hard.
The shares of some of the largest car brands in the world were traded sharply on Friday, and sharp losses extend from the previous session.
The shares of cars fell deeper into the negative lands shortly after the Ministry of Finance, China, the Ministry of Finance said that Beijing intends to impose a 34 % tariff on all goods imported from the United States starting April 10.
StelantisWho has the names of families including Jeep, Dodge, FIAT, Chryler and Peugeot, 7 % less at 1:30 pm London time (8:30 am EST). Milan’s runway arrow fell by more than 8 % in the previous session.
Germany Volkswagenand BMW and Mercedes Benz collectionAt the same time, all trading is about 4 % less.
How did car makers respond?
Volkswagen, the largest car maker in Europe, plans to add import fees to the prices of stickers in its cars that are shipped to the United States in response to Trump’s definitions. According to what was reported, the German auto giant stopped all the rail shipments from the vehicles built in Mexico to the United States
Tables reported for the first time by commercial publication Car newsIt appears to emphasize the immediate effect of Trump’s definitions on the company.
“We communicate with our merchant body on all aspects of the work, and we want to be very transparent about moving during this time of uncertainty,” Volkswagen spokesman told CNBC via email on Thursday.
They added, “We have our interests and customer dealers in the heart, and as soon as we determine the impact on work, we will share our strategy with our traders.”
The Stelantis Windsor assembly factory appears on April 1, 2025 in Windsor, Canada.
Bill Bogliano Getty Images News | Gety pictures
Stelantis, and at the same time, Declare On Thursday, production will stop in two collection factories in Canada and Mexico. This step means that about 900 workers in the United States in supportive plants will be temporarily demobilized.
The procedures considered that they are the most severe by the auto manufacturer regarding the new tariffs.
Stelantis begins on Monday, and it is appointed for two weeks at the Windsor Automobile Assembly Factory in Ontario, Canada, and the entire April in the tuluka assembly factory in Mexico.
Stelantis joined Friday as well Ford Motor In providing employee prices on new vehicles For all American consumers Somehow to enhance sales and clear vehicle stocks in the wake of Trump’s tariff and amid economic concerns.
Elsewhere, Nissan engineInfiniti’s luxury brand has arrested indefinitely from two Mexico -made transitions to the United States in response to American definitions.
In a brand retail memorandum, the Vice President of the Enginethine American Thiago Castro said that the QX50 and QX55 out of the United States may stop “until further notice” due to the definitions.
A spokesman for the company confirmed the procedures on CNBC on Thursday and said that the Japanese auto industry company is reviewing “production operations and its supply chain to determine the optimal solutions for efficiency and sustainability.”
Enhancing American production
The escalating global trade war is expected to have a profound impact on the auto industry, especially given the high globalization of supply chains and strong dependence on manufacturing operations throughout North America, especially Mexico.
According to the Volvo cars in Sweden on Thursday, they intend to produce more cars in the United States and intensify efforts to add regional character to their positions in China and Europe.

“We are very ready in China and Europe,” said Hakan Samuelson, CEO of Volvo Motors. “
A Volvo Cars spokesman said on Friday that the company is looking to increase the production of EX90 SUVs to the United States to develop storage units and reduce costs.
“The global auto industry, in addition to Volvo cars, is facing increased geopolitical and regional complexity. This makes the Volvo a long construction cars strategy where we sell more important.”
“As part of this, Volvo cars are also considering the potential possibility to add another car model in our American factory, which is 150,000 cars annually,” they added.
Volvo Cars was not immediately available for comment when CNBC on Friday.
Separately, the luxurious car maker in Italy Ferrari He said Last week, prices will raise certain models after April 1 in response to the definitions of new US cars, adding up to $ 50,000 to a model car price.
Who compares with the prevailing auto industry company Hyundai MotorWhich pledged on Friday not to raise prices on the current vehicle collection due to the potential costs of costs due to the customs tariff as part of the new “Customer Guarantee” program until June 2.
“We know that consumers are not sure of the possibility of high prices and we want to provide them with some stability in the coming months,” Jose Montes, CEO of Hyundai said in the statement.
Hyundai said that she encourages her distinguished traders to look at the program and the proposed retail price for the manufacturer when setting vehicle prices, but they admitted that retailers are independent companies that could raise prices on their own.
– Robert Frank of CNBC contributed to this report.
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2025-04-04 17:53:00