Supply Lines is a daily newsletter that follows global trade. . Only hours after coming into effect, President Donald Trump’s 25% tariffs on imported cars have already been echoed around the world. Jeep-maker Stellantis NV plans to temporarily stop production in Canada and Mexico. Ford Motor Co. started offering a steep discount to let customers come to showrooms. Volkswagen AG warned dealers that it would tackle the import fees to the vehicles it sends to the US, while Toyota Motor Corp is cutting overtime in a Mexico factory. The moves show the immediate fallout of car tariffs that came into effect shortly after midnight in Washington. The charges, which are part of a broader trade war, are expected to increase supply chains and add thousands of dollars to most vehicle models. Canada responded with plans to slap a 25% retaliation on US manufactured vehicles, Prime Minister Mark Carney announced on Thursday. The shares of the car manufacturer fell with the rest of the market after the trade started on Thursday. General Motors Co. was down 3.3% at 11:03 in New York, Ford fell 4.4% and Stellantis fell by 7.4%. The manufacturer of electric vehicles Tesla Inc., which analysts expect to affect relatively less through rates, fell by 6.9%. The implementation came shortly after Trump said the US would impose a 10% tariff on each country exporting to the US, plus additional duties targeting about 60 countries. Although imported cars and parts have been exempt from the so -called reciprocal rates, the car manufacturers are already working on Trump’s growing trade war. “Although the sector feels that it has only been using a bullet, we are concerned that the rates of vehicles and parts are here to stay and deliver a significant cost -burden,” Bernstein analyst Daniel Roeska told clients. Some car parts will also be hit by a levy later than May 3 under a plan that Trump announced last week. The US will also hold existing rates of 25% on Canada and Mexico, and an exemption for goods that comply with the free trade agreement between the countries will remain indefinite, officials said. Those charges were initially imposed to act on action to combat the flow of Fentanyl. The countries will move to the new tariff regime if the initial levies are lifted, officials said. Buyers chase in car buyers rushed to US showrooms to include transactions before possible price increases are from the levies. According to JP Morgan analyst Ryan Brinkman, sales of March drove to an annual rate of about 17.8 million vehicles. But as the offer runs out, car manufacturers are using significant potential cost increases and offer chain turmoil. Auto drivers continue to support the administration to limit the fallout, with Ford, GM and Stellantis focusing their efforts to exclude certain low-cost motor parts of the rates. On Thursday, with the new rates, Ford said that it made it almost his entire series of discounts on the roll -off spot for car buyers in its showrooms. Ford’s discount program “From America, for America”, which runs until June 2, and offers an employee-price-for-all transaction, reminiscent of the ‘Keep America Rolling’ 0% financing promotion offered after the September 11, 2001 terror attacks, which started the US sales in a block economy. Industry managers said they supported Trump’s goal of building more vehicles in the US and expanding the country’s manufacturing base. But the shifting of car-mounting plants is likely to take years, and it may never be caught for cash parts providers. Canada, Mexico Stellantis, which includes brands, including Ram and Chrysler, said it would start production at the Windsor, Ontario, for two weeks on Monday, citing uncertainty about rates. The company will also abandon its Jeep plant in Toluca, Mexico, which makes the entry-level compass. The moves will also affect employees at various US power and stamp facilities. About 900 workers on all affected websites will be temporarily discharged, including workers at various US power and bump facilities, a Stellantis spokeswoman said. “With the new car rates now in force, it will take our collective resilience and discipline to push through this challenging time,” America chief operating officer Antonio Filosa said in a memo for employees. “We continue to judge the medium and long-term consequences of these rates on our operations, but have also decided to take actions immediately.” Toyota stopped overtime work at its Guanajuato plant, Mexico, in response to the rates, said Sitimm Union chief Alejandro Rangel, which represents workers at Car Providers in Central Mexico. The plant makes the Tacoma Hybrid bakkie and exports most of its production to the US. Honda Motor Co. Meanwhile, holding workers to reduce or cancel overtime at the mounting plant in the same condition for the next six weeks, which make the HR-V-Klein crossing, largely for export, Rangel said. A representative for Toyota’s North American activities made no immediate comment. Honda’s North America unit did not immediately respond to a request for comment. Rangel said further reduction in those plants is not expected now because the demand for vehicles exceeds the factories installed capacity. “This is very important news here in the region, because around each of these two car plants we have between 30 and 40 companies that are direct suppliers to these plants,” Rangel said. Europa car manufacturers Mercedes-Benz Group AG production chief Jörg Burzer said on Thursday that the car manufacturer is considering making more vehicles in the US in response to rates. The company also weighs whether it wants to pull its cheapest cars like the GLA Small SUV out of the US market, because the rates would make those vehicles economically unenforceable, Bloomberg reported. “We still judge the effects of these rates,” Burzer said on the sidelines of a company event in Stuttgart, Germany. “We made a few plans, but flexibility is absolutely the key.” The CEO of Volvo Car AB, CEO Håkan Samuelsson, also promised to increase the number of cars it built in the US and move another model to the factory in South Carolina. The Swedish car manufacturer will have to “look carefully” which model it will contribute to production lines, he said in an interview on Thursday. Meanwhile, Volkswagen has sent a memo to its US traders warning that it intends to add import fees to the sticker prices of its vehicles sent to the US. With the help of Chester Dawson, Alex Vasquez, Josh Wingrove, Meghashyam Mali, Rafaela Lindeberg, William Wilkes, Derek Wallbank and Keith Naughton. © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.
Car manufacturers idle plants, reconsider prices like Trump’s rates hit
