Archive · 13 Jun 2025
Trump Hints at Auto Tariff Hike to Boost US Production
President Trump is considering raising tariffs on imported cars to push automakers to build more factories in the U.S. Currently, there's a 25% tariff on many imported cars, which automakers want to reduce.
Trump believes these tariffs have encouraged companies like GM and Hyundai to invest billions in U.S. plants.
However, tariffs are increasing costs for automakers, causing some, like Ford and Subaru, to raise prices.
Cars made in Mexico have a slightly lower tariff if they contain U.S.-made parts.
GM estimates they have billions in exposure to tariffs due to imports.
Trump signaled he might raise auto tariffs to encourage U.S. manufacturing.
Automakers have been urging the White House to lower the existing 25% tariffs.
Trump noted recent investments by GM and Hyundai as evidence of tariffs' impact.
Mexico-assembled cars face a 15% tariff due to U.S. content reductions.
Ford and Subaru have increased prices, and GM faces billions in tariff exposure.
- Who
- U.S. President Donald Trump.
- What
- Trump is considering increasing auto tariffs.
- When
- Trump made the statement on Thursday.
- Where
- At a White House event.
- Why
- To encourage automakers to increase U.S. investments in manufacturing.
Automakers' View
Trump's View
Tariff levels
Automakers' View
Automakers want the current tariffs to be reduced, as they are raising costs.
Trump's View
Trump believes tariffs are effective and wants to potentially increase them.
- Current Auto Tariff
- 25%
- GM Investment
- $4 billion in three U.S. plants
- Hyundai Investment
- $21 billion including a U.S. steel plant
- Mexican Tariff Rate
- 15% for cars assembled in Mexico with U.S. content
- Ford Tariff Cost Estimate
- $1.5 billion in adjusted earnings
- GM Tariff Exposure
- $4 billion - $5 billion