Overview

• The 25% tariffs on all imported vehicles and auto parts announced by President Trump will take effect on April 3, 2025, impacting global automakers and supply chains.
• U.S. car prices are projected to increase by $3,000 to $10,000 per vehicle, with inflation potentially rising by 0.2% to 0.4% due to the tariffs.
• Major automakers in Japan, South Korea, Germany, and North America are facing stock declines and operational challenges as they navigate the new trade barriers.
• Key trading partners, including Canada, Mexico, and the EU, are preparing retaliatory tariffs, raising concerns about a prolonged global trade conflict.
• Tesla is less affected by the tariffs due to its U.S.-based production, while other automakers face significant restructuring to adapt to the new trade landscape.