Overview

• The U.S. administration’s 25% tariff on imported auto parts, implemented May 3, follows a similar levy on vehicles introduced in April.
• General Motors anticipates £3.7 billion in added costs this year, while other automakers warn of higher vehicle prices and production risks.
• Suppliers like Hyundai Mobis, Hankook Tire, and Kumho Tire are increasing U.S. output and diversifying supply chains to mitigate tariff impacts.
• The tariff relief program exempts parts from Canada and Mexico but maintains steep duties on Chinese components, which face at least 145% tariffs.
• Offset mechanisms offer partial rebates for vehicles with predominantly North American parts, with content thresholds increasing in year two.