Overview

• The U.S. government has implemented a 25% tariff on imported vehicles and parts, effective April 3, 2025, as part of a broader trade strategy under President Donald Trump.
• Canada and Mexico are exempt from baseline tariffs but still face increased auto-specific levies, complicating trade dynamics in North America.
• Stellantis announced a two-week shutdown of its Windsor Assembly Plant in Ontario, citing the tariffs as the primary reason for the decision.
• Economists and industry experts warn of higher vehicle prices, declining car sales, and significant disruptions to the auto industry's tightly integrated supply chains.
• Global automakers are grappling with financial and operational uncertainty, with mixed reactions in auto stock markets and concerns about long-term economic impacts.