Trump Threatens to Hike Auto Tariffs Beyond 25%—Trade War Escalation Looms
Brace for impact—the US auto industry could face even steeper import costs as Trump pushes tariffs into uncharted territory.
Higher walls, fewer wheels
The former president wants to crank existing 25% auto tariffs into overdrive, squeezing foreign manufacturers and domestic buyers alike. No official numbers yet—just classic Trumpian negotiation theater.
Who pays? You do
Automakers will pass costs to consumers faster than a Tesla hits 60mph. Meanwhile, lobbyists prep their PowerPoints like it''s 2018 all over again.
Bonus: Wall Street analysts are already pricing in the ''Trump Tariff Premium''—because nothing boosts markets like artificial trade barriers.
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“I might go up with that tariff in the not too distant future,” said Trump at a WHITE House bill signing ceremony. “The higher you go, the more likely it is they build a plant here.” He added that U.S. auto manufacturing investments have increased since the initial auto imports were enacted.
GM Announces $4 Billion U.S. Plant Investment
On Tuesday, General Motors (GM) announced that it WOULD invest $4 billion over the next two years in U.S. manufacturing plants for both gas and electric vehicles. Upon completion, GM will have the capacity to manufacture over two million vehicles per year.
Last month, Toyota (TM) announced an additional $1.4 billion investment toward its plant in Princeton, Indiana, bringing its total Indiana investment to $8 billion. Toyota has invested $18.6 billion in U.S. manufacturing since 2021.
Still, both auto stocks are falling on the day.
