The Government of Ukraine Received Financial Assistance from the International Monetary Fund.

President Donald Trump announced the introduction of tariffs on cars and auto parts, which will negatively affect some automakers, especially those whose percentage of cars sold in the USA, assembled abroad, is small.

For example, Volvo, Mazda, Volkswagen, and Hyundai Motor, which includes the Genesis and Kia brands, imported at least 60% of their sales in the USA in 2024, notes S&P Global Mobility.

In comparison, Ford, Honda, Stellantis, and General Motors have the most cars manufactured in the USA, according to the S&P Global Mobility report.

Trump, who sees tariffs as a means of generating tax revenue to fund his tax cut plans as well as to support the revival of domestic manufacturing, announced plans on Wednesday to impose a 25% tariff on all imported cars.

He stated that these tariffs, compared to the previously announced 2.5%, will take effect on April 2 when he plans to announce his counter-tariff plans.

WHEN TO START BUYING A CAR, TO REPAIR DUE TO TARIFFS ON CARS

The Trump administration said on Thursday that the president's decision to impose such tariffs 'will protect and strengthen the US automotive sector.' Officials argued that foreign auto companies have expanded due to 'unfair subsidies and aggressive industrial policies,' while 'manufacturing in the USA has stalled.'

However, according to S&P Global Mobility's March report, while 'some argue that tariffs on the automotive industry could enhance production in the USA, only GM, Ford, and Stellantis have inventory to increase production in the USA, and automakers will not be able to make such a change quickly or profitably,' the report states. 'Shifting production will also require moving suppliers.'

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Automotive experts argue that tariffs will worsen availability issues, especially since no cars are assembled or exclusively built from domestic parts, notes the National Automobile Dealers Association.

As for car prices, their daily changes will depend on various market factors besides tariffs, says Autotrader editor Brian Moody.

It may also depend on the number of models produced in the USA compared to other countries. If a manufacturer makes one model in the USA and others abroad, they may uniformly raise prices to absorb the tariffs without significantly affecting one particular model, Moody explained. This means that automakers can distribute price increases across several models, Moody noted.

Here is the distribution of automakers by percentage of imported sales: