The border wall is shown in a background as a semi-camion carrying Toyota trucks crosses a bridge after erased American customs while entering the United States from Mexico along the border in San Diego, California, March 4, 2025.
Mike Blake | Reuters
Automobile actions digest the announcement of President Donald Trump that he would place 25% of prices on “all cars that are not made in the United States”, as well as certain automotive parts.
Trump’s administration had telegraph plans to put prices on the automotive industry, but the effect of these movements and mechanisms for the application is starting to take shape. The president’s decree said the prices would take effect for vehicles on April 3 and automotive parts by May 3.
The actions of the “Detroit Three” have all dropped. General Motors The stock has dropped to move only 7%, while Stelllantis And Ford engine The shares have lost around 1% and more than 3%, respectively. Actions of TeslaHowever, were mainly unchanged.
“In our cover, for [original equipment manufacturers]Tesla and Ford seem to be the most protected location of vehicle assembly installations, although Ford faces an additional exposure on imported engines, “Deutsche Bank analysts wrote on Thursday in a note.” GM has the most exhibition in Mexico. “”
Trump said Wednesday that he would not put a price on vehicles built in the United States
The prices apply to imported passenger vehicles and light trucks, as well as key automobile parts, including engines and transmissions, said the White House in an information sheet.
Certain aspects of the prices are still taking place. Automobile parts that comply with the approval of the United States-Mexico-Canala will remain without a price until the Secretary of Commerce can consult customs and the protection of American borders to determine how to apply rates to non-American content.
The Union of the United Auto workers applauded Trump’s announcement.
“These prices are a major step in the right direction for car workers and blue-collar communities across the country, and it is now on car manufacturers, from the three talls to Volkswagen and beyond, to bring good union jobs to the United States,” said UAW president Shawn Fain, in a press release on Wednesday.
The former governor of Missouri, Matt Blunt, president of the American Automotive Policy Council – who represents Ford, GM and Stellantis – said in a statement that the AAPC was “attached to the vision of President Trump to increase automobile production and jobs in the United States and will continue to work with the administration on sustainable policies that help the Americans.”
However, Blunt warned that prices should be implemented in a way “which avoids increasing consumer prices and which preserves the competitiveness of the integrated North American automotive sector”.
Vehicles are made up of tens of thousands of pieces, many of which go back and forth on the American border before the end of a final product.
FIR has data and forecasts S&P Global Mobility Reports that there are an average of 20,000 rooms in a vehicle when it is destroyed to its nuts and bolts. Parts can come from 50 to 120 countries.
The company also reports that 25 car manufacturers produce an average of 63,900 light passenger vehicles in North America per day. The majority of these, around 65%, are assembled in the United States, followed by 27% in Mexico and 8% in Canada.
Goldman Sachs analysts wrote Thursday that the 25% Trump price could increase the price of cars imported from $ 5,000 to $ 15,000. If around 50% of the parts of an American manufacturing car came from foreign sources, the price could increase the price of these cars from $ 3,000 to $ 8,000, they added.
President Trump previously granted car manufacturers a month’s price exemption for vehicles in accordance with the rules of origin of the United States-Mexico-Canada.
– Michael Wayland and Michael Bloom from CNBC contributed to this report.