Tariffs Will Cost This Detroit Automaker Billions More Than Its Rival

The Trump administration enacted a 25% tariff on April 3 on any vehicle not assembled in the U.S. President Donald Trump has said he also plans to place tariffs on some auto parts (including engines and transmissions), but those won’t take effect until May 3. These moves could certainly threaten the automotive sector’s profitability in the near term. Reciprocal tariffs that vary from country to country are likely to be enacted in response. Automakers had lobbied for vehicles and parts that are compliant with the United States-Mexico-Canada trade agreement to be tariff-free, but so far there have been no exemptions made.

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