US automakers have responded to President Trump’s 25% tariff on imported cars, with some companies imposing production pauses, layoffs, and price hikes. Others are offering discounts to beat the tariffs or freezing prices for now.
Job cuts at Stellantis’ Midwest factories will affect about 900 workers temporarily. The company cited “current market dynamics” as a reason for the layoffs.
Luxury car maker Jaguar Land Rover has paused US shipments of its British-made cars, citing uncertainty over longer-term plans.
However, some buyers are rushing to dealerships in anticipation of future price hikes. Hyundai reported record sales last month, while Toyota saw an increase in customer traffic at dealers.
Ferrari will cover tariff costs for some models, and BMW will absorb the costs until May. Some companies, like Hyundai, have reassured customers that prices won’t rise immediately.
Industry analysts predict car prices could jump 5-10% due to the tariffs, with imported parts accounting for a significant portion of retail prices. Ford is offering employee pricing as part of its promotional campaign, while Nissan has cut prices on some models.
As the industry waits for the impact of the car parts tariff, experts warn that prices will rise regardless of where cars are made.
Source: https://www.npr.org/2025/04/05/nx-s1-5353461/automakers-tariffs-reactions