Summary
Trump warned automakers not to raise prices after announcing a 25% tariff on imported vehicles starting April 3, claiming the tariffs would be “great” and benefit U.S. manufacturing.
Industry leaders, including GM, Ford, and Stellantis CEOs, expressed concerns about inevitable price increases, with experts warning tariffs could add thousands to car costs.
Auto suppliers stated that absorbing tariffs is impossible, and dealers fear affordability challenges for consumers.
While the United Auto Workers union support the move as a job creator, trade groups predict higher prices and fewer manufacturing jobs.
Tesla does source some parts from outside the US, so they will be impacted. However, they are definitely the MOST US-based and will be hurt the least. Other US brands and foreign brands that have mfg in the states source a ton of parts from around the world. Those parts will all be more expensive, so prices will go up by some percentage.