Overview

• At a White House event, President Trump said he may raise the existing 25% tariff on imported vehicles soon to drive more manufacturing to American soil.
• Major automakers including the Detroit Three are urging the administration to scale back the current levy, warning it inflates costs and cuts into profits.
• General Motors committed $4 billion to expand operations at three U.S. plants and shift some SUV production out of Mexico.
• In March, Hyundai unveiled a $21 billion U.S. investment plan that features the construction of a new domestic steel mill.
• The levies have prompted firms like Ford and Subaru to hike prices and left GM with $4 billion to $5 billion in tariff exposure, while Mexico secured a reduced average rate of 15% for vehicles with U.S. content.