Fresh discounts, hiking prices and suspended production are support from the largest U.S. automakers on the Trump administration’s 25% tariff on imported cars, a strategy that took effect last week. “They are taking multiple paths,” Karl Brauer, executive analyst at Iseecars.com, told Observer. In addition to considering long-term approaches, such as production moving from abroad to the United States, automakers are looking for short-term options to prevent tariffs from disappearing in the near future to prevent losses in their business. “They are trying to prepare for both of these accidents,” Brauer added.
In some cases, companies are taking advantage of the current environment. For example, Ford (F) is currently offering employee discounts to the wider public to encourage sales by “responding to consumer fears.” Meanwhile, automakers such as Volkswagen (VWAPY) have taken the opposite approach and have begun raising prices to reflect the impact of tariffs. Others, such as Stellantis, the owner of Chrysler, stopped production abroad or began the process of strengthening domestic manufacturing.
Here are the responses from major automakers to the present:
Ford
After the 25% tariff came into effect on April 3, Ford quickly released a offer that proposed to call it a “handshake deal with the United States.” Until June 2, U.S. customers will be able to purchase 2024 and 2025 models at employee discounts. This offer includes a pre-existing promotion before June 30 that provides a supplementary home charger for customers who purchase one of the electric vehicles (EVs).
“We know that for many Americans, this is an uncertain time,” the company said in a press release. “Whether it’s navigating the complexity of economic change or just providing reliable vehicles for your family, we want to help.”
Stellantis
Stellantis, parent company of brands such as Jeep and RAM, also lowered prices based on taxes. The company calls its “exciting and competitive enhancement” employee discount program to expand to April 30.
The company will also suspend production at its factories in Canada and Mexico. Work at the assembly plant in Windsor, Canada will be suspended for two weeks. Additional facilities in Toluca, Mexico will be closed for one month. These suspensions will result in temporary dismissal of 900 workers in support facilities in the United States
General Motors
General Motors (GM) is reportedly planning to increase domestic production of its light trucks. This will be done by hiring hundreds of temporary workers in its Fort Wayne, Indiana to help build Chevrolet Silverado and GMC Sierra trucks, half of which are currently made by GM in Mexico and Canada.
Jaguar
England-based Jaguar will shelve U.S. April shipments completely. Last year, one-quarter of its UK-made cars were sold in North America. The company’s pause will help Jaguar “form our long-term plan.”
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Taxes will soon have a significant impact on Volkswagen consumers, most of which will become more expensive. The German automaker, reportedly imports nearly all of the cars it sells in the U.S., is planning to increase “import fees” to such vehicles later this month. Volkswagen will decide the details of this price increase in mid-April.
The company’s car shipments from Mexico to the United States have been temporarily suspended. It also plans to reduce sales incentives.
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Hyundai promises to keep its prices stable over the next two months. The day after the tariffs came into effect, it launched a “Customer Assurance” program, which ensures that model prices remain unchanged until at least June 2. “We know that consumers are uncertain about the likelihood of price increases and we hope to provide them with some stability in the coming months,” Hyundai Co-CEO José Muñoz said in a statement.
Toyota
On Toyota, it also, as usual, has no plans to raise vehicle prices or make changes to its operations in the near future. According to Nikkei, given that the other 25% tariff will affect imported auto parts, the automaker told Part suppliers it would help pay for fees related to such taxes.
Tesla
Given that 30% to 40% of its vehicle parts come from abroad, it will inevitably affect electric car manufacturers like Tesla (TSLA), it will inevitably be affected by the component tax next month.
“Tesla is not unscathed,” Tesla CEO Musk wrote in an X post last month. Musk, who, along with the Trump Administration as head of the government’s efficiency department, appeared to be more broadly different from the president’s view of tariffs in a recent speech, calling for a “zero watch situation” between the United States and Europe.
