Price hikes, idled factories, layoffs: how car companies are responding to Trump’s tariffs
President Donald Trumpâs 25 percent tariffs on all auto-related imports have been called âa debacle of epic proportionsâ and a sure-fire way to tank the auto market by crushing demand. Analysts have been predicting everything from $12,000 per vehicle price hikes to the possible âCubanizationâ of the US car fleet.
Now that theyâve had a few days to process the news, the automakers are starting to get their ducks in a row and make some moves.
Hereâs how each company is responding:
Audi
Now that the tariffs are in effect, the German automaker is holding all vehicles assembled in Mexico and overseas at US ports until further notice, according to Automotive News. Audi currently has 37,000 units in dealer stock and at port â which remain unaffected by the new import fees and are ready to sell. Audi reportedly said it would be marking unaffected units with a $0 âNo Added Import Feeâ option code for easy tracking.
âWe are evaluating how to best proceed for our customers and our dealers,â Audi spokesperson Mark Dahncke said.
BMW
BMW hasnât announced any specific response yet, but the company said last month that it expected a â¬1 billion hit to its 2025 …