Understanding the Impact of the US's 25% Car Tariff

Updated: April 10 – Even with President Trump's proposed 90-day pause on reciprocal tariffs, the 25% tariff on non-US cars is still in effect. Let's explore which car manufacturers are likely to lose or gain.

Losing Brands

- Jaguar Land Rover (JLR)
- Exports 25% of its production to the US.
- Does not have US manufacturing plants.
- Faces challenges with models like the Defender, made in Slovakia.

- Lotus
- Has a limited presence in the US, with production located in China.

- Mini
- Primarily serves the US market with UK and German productions.
- Competes with US-made alternatives.

- Audi
- Lacks US manufacturing.
- Most popular models are assembled in the EU.

- General Motors
- Relies heavily on cross-border trade.
- Low local production could affect profitability.

- Volkswagen
- Major sales come from foreign manufacturing, particularly in Mexico.

- Rolls-Royce
- Higher costs for US customers due to reliance on German components.

Winning Brands

- Tesla
- Produces all vehicles in the US, so the impact is minimal.

- Rivian
- Entire production located in the US.

- Ford
- Strong domestic manufacturing presence that protects against tariffs.

- Nissan
- Faces minor impacts, though there's a risk from competitors shifting production.

- McLaren
- Highlights handmade appeal; tariffs may not deter US customers.

- Aston Martin
- Similar to McLaren, focusing on premium UK manufacturing.

- Hyundai and Kia
- Extensive manufacturing in the US offers protection against tariffs.

Summary

The 25% car tariff continues to affect various automotive brands differently. While US manufacturers like Tesla and Ford stand to benefit, foreign automakers face significant challenges, particularly those dependent on overseas production. The situation remains fluid as trade negotiations evolve.