Automakers warn 25% import tariff will impact U.S. consumers

Published 28/03/2025, 20:50
© Reuters.

Investing.com -- A warning has been issued by the Alliance for Automotive Innovation, a group representing major automakers including General Motors (NYSE:GM), Toyota (NYSE:TM), and Volkswagen (ETR:VOWG_p), regarding the new 25% tariffs on imported vehicles that President Donald Trump plans to impose next week. The group has expressed concerns that these tariffs will have negative effects on U.S. consumers.

John Bozzella, the representative of the Alliance for Automotive Innovation, stated that the additional tariffs would lead to an increase in costs for American consumers. Furthermore, the total number of vehicles sold within the U.S. is expected to decrease due to these tariffs. The group also anticipates a reduction in U.S. auto exports, all of which would occur prior to any creation of new manufacturing or jobs in the country.

The Alliance for Automotive Innovation represents every major automaker. The group’s warning comes as the automotive industry braces for the impact of the impending tariffs, which aim to protect domestic manufacturers but could have unintended consequences for consumers and the broader auto industry.

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