US automakers are scrambling to avoid a potential 25% tariff on vehicles and parts from Canada and Mexico starting April 2, as President Donald Trump nears the deadline. The industry is studying scenarios to appease the president and seeking relief through moves like shipping vehicles into the US or investing in domestic production.
Behind-the-scenes lobbying efforts by automakers are underway, with executives pushing for a consistent policy. They aim to reach a partnership with the administration that benefits both sides. However, some suppliers warn of potential disruptions due to tariffs, which could lead to increased vehicle prices near $50,000.
Tesla CEO Elon Musk has pledged to double US production during Trump’s term, while other automakers like GM and Stellantis are investing in domestic manufacturing. The American Automobile Labeling Act lists several vehicles with 0% US and Canadian content, sparking concerns about the impact of tariffs on the industry.
The Detroit Three are expected to continue lobbying efforts in coming weeks, seeking a mutually beneficial agreement that supports American competitiveness and profitability. With the April 2 deadline looming, automakers must navigate the complexities of Trump’s tariff plans to avoid significant disruptions to their business.
Source: https://eu.detroitnews.com/story/business/autos/2025/03/17/auto-industry-donald-trump-tariffs-april-2-deadline-production/82500907007