The Case for Trump’s High-Tariffs Autonomy Tax Credits in the US: Volvo, Stellant, and SF90

Volvo is looking into increasing its US production and possibly bringing new models to the Ridgeville, South Carolina, factory, the company’s CEO said. Volvo already builds the EX90 SUV and Polestar 3 at the plant in order to take advantage of the federal EV tax credit.

The New York Times reported that VW will raise the price of imported cars in the US. The exact amount will be determined later this month. It was the clearest example yet of Trump’s tariffs leading to higher costs for consumers.

The new policies would cause the price of many of the company’s cars to increase by 10% or more. Some current models, including the Roma which has a sticker price of almost a quarter million dollars, would be exempt from the increase. The statement by the company said it would cover the tariffs for the Roma, and SF90

Tesla, which is dealing with its own problems, hasn’t immediately responded to the news of the tariffs. CEO Musk made comments in response to commentary on X that said that the company is better insulated from the new fees because it only sells cars that are made in the US.

Stellantis’ North American Chief Operating Officer Antonio Filosa said in an email sent to employees on Thursday that while the company continues to assess the medium- and long-term effects of the tariffs on its operations, the immediate layoffs and production pauses “are necessary given the current market dynamics.”

The company halted production at its assembly plants in Mexico and Canada. 900 people will be laid off in Michigan and Indiana due to the company’s decision.

The parent company of Jeep, Dodge, Ram, Maserati, and others has good news and bad news to share in response to the tariffs. It is copying a Ford idea of employee prices being discounted to the public. The bad news is that it’s temporarily laying off 900 workers while pausing production at several factories.

Porsche has never been the cheapest sports car on the block, but tariffs are likely to put renewed pressure on its prices. Last month, the company’s executives told reporters that it was likely to pass the cost of tariffs along to its customers, according to The Wall Street Journal.

Implications of Trump’s US-tariff measures on auto-related production: Toyota and Honda in Smyrna, Tennessee

“We are reviewing our production and supply chain operations to identify optimal solutions for efficiency and sustainability,” spokesperson Lloryn Love-Carter said in a statement. “Our objective is to implement the most effective industrial strategy to offer Nissan and Infiniti customers great product and strong value.”

Nissan initially said that it would cut a shift at the Smyrna, Tennessee, assembly plant where it makes its popular Rogue SUV once Trump’s tariffs went into effect. But now that the tariffs are here, the company reversed itself, committing to keeping two shifts at the factory.

The luxury automaker is reportedly considering pulling its least expensive models, like its entry-level GLA, from the US market, Bloomberg said. Mercedes-Benz was still assessing the impact of the US-tariff lines, and no decisions had yet been made.

“I’m appalled. It will kill Jaguar Land Rover in the town, one resident told The Guardian. There could be job losses because of the JLR export to America. The knock-on effect is going to be enormous.”

The UK-based media is told that the local business still remains resilient. But residents of the town where Jaguar operates its factory were dour about the news.

“Hyundai Motor, including Kia, Hyundai and Genesis, remains committed to the long-term growth of the U.S. automotive industry through localized production and innovation,” spokesperson James Bell said in an email.

President Donald Trump’s 25 percent tariffs on all auto-related imports have been called “a debacle of epic proportions” 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 “Cubanization” of the US car fleet.

Meanwhile, Honda dealers are reassuring their customers that most of their most popular vehicles are made in the US. Chris Martin referred to a group called the autos drive America trade group which stated that it is impossible to rebuild supply chains in a few weeks with the added financial burden of tariffs.

The Japanese automaker may not be merging with Nissan, but its already making moves to adjust to the tariffs. The company is planning on producing its next-generation Civic hybrid in Indiana instead of Mexico to avoid import duties, Reuters reported last month.

GM has three plants in Canada and two in Mexico that make the Chevrolet Silverado and GMC Sierra trucks. The majority of the large pickup truck manufacturing is done in Mexico and Canada according to a recent report.

JP Morgan Global Research said that the discount might help Ford clear out some of its excess inventories, since it had a 74 day supply at the end of March, compared to 50 days for GM.

“We understand that these are uncertain times for many Americans,” Ford says on its website. We want to help with situations such as navigating a changing economy, or simply needing a reliable vehicle for your family.

The promo runs April 3rd through June 2nd and offers “significant savings” on a number of 2024 and 2025 gas, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles, according to the company. The discount on top of the Ford Power Promise deal will be given to EV customers. Excluded from the limited-time offer are Ford Raptor models, 2025 Expedition and Navigator SUVs, and Super Duty trucks.

Ford was first out of the gate with a response geared toward people panic shopping, hoping to capitalize on pre-tariff sticker prices. The program “From America, For America” offers employee pricing to everyone.

BMW hasn’t announced any specific response yet, but the company said last month that it expected a €1 billion hit to its 2025 earnings as a result of tariffs.

All vehicles assembled in Mexico and overseas at US ports are being held up until further notice because of the tariffs, according to automotive news. The new import fees do not affect the 37,000 units in dealer stock or at the port. Audi reportedly said it would be marking unaffected units with a $0 “No Added Import Fee” option code for easy tracking.

The Cost of Imported Cars in the United States during Trump’s First Term: A Nonpartisan Analysis of Implications for American Businesses and Consumers

is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.

As a result, industry analysts expect consumers to see higher car prices, and some buyers have been rushing to the dealerships in anticipation of future sticker shock.

The cost of cars assembled in the US could go up if the tariffs on imported car parts are not stopped by May 3.

The company has supplied Jaguar SUVs to the service owned by the parent company. It’s not yet clear whether the tariffs will affect Waymo’s service.

The company said in an email that the USA is important for its luxury brands. In order to address the new trading terms with our business partners, we are taking some short-term actions, one of which is a shipment pause in April.

White House officials have said that foreign companies will absorb the costs of tariffs. But a study by the National Bureau of Economic Research, a nonpartisan nonprofit organization, found that’s not what happened during Trump’s first term — when costs were mostly passed on to U.S. businesses and consumers.