President Trump plans to place a 25 percent tariff on imported auto products to boost domestic manufacturing, but some experts warn customers might feel the ripple effects.
“The price of these cars may actually go up because eventually the tariff impact will be passed on to customers in some way,” said Paul Hong, a distinguished management professor at the University of Toledo.
According to the proclamation Trump signed Wednesday, the 25 percent tariff will be applied to imported passenger vehicles, like sedans, SUVs, and minivans, as well as automobile parts, like engines, transmissions, and electrical components. The tariff can expand on additional parts if necessary, administration officials said.
Automobile importers under the United States-Mexico-Canada Agreement will be given the opportunity to certify their domestic products, meaning the 25 percent tariff will only apply to the value of their foreign products. USMCA-compliant vehicle parts will remain tariff-free until the Secretary of Commerce and U.S. Customs and Border Protection establishes a process to apply tariffs to their foreign products.
The tariff is set to go into effect on April 3, according to Trump’s proclamation, and is meant to boost domestic manufacturing while also placing financial pressure on automakers that depend on global supply chains.
Mr. Hong said there are two ways a tariff — essentially a tax the U.S. government collects on exported products — can be handled by companies.
In one way, exporters from other countries could try to cut their costs so when they export to the United States, even after the tariff is applied, their product will still be competitive in the domestic market. In the other, exporters might pass on the financial impact of the tariff to the consumer.
The Blade reached out to representatives at General Motors’ Toledo Propulsion Systems and Stellantis’ Toledo Assembly Complex.
Kevin Nadrowski, a senior manager of plant communications for GM, referred The Blade to a statement from Matt Blunt, president of the American Automotive Policy Council.
“U.S. Automakers are committed to President Trump’s vision of increasing automotive production and jobs in the U.S. and will continue to work with the administration on durable policies that help Americans,” Mr. Blunt wrote. “In particular, it is critical that tariffs are implemented in a way that avoids raising prices for consumers and that preserves the competitiveness of the integrated North American automotive sector that has been a key success of the president’s USMCA agreement.”
The policy council represents Ford Motor Co., General Motors Co., and Stellantis.
National United Auto Workers President Shawn Fain applauded the Trump Administration for the proclamation in a statement Wednesday.
Mr. Fain has previously been critical of Trump and his policies, and the UAW endorsed his presidential opponent former Vice President Kamala Harris, but Mr. Fain said the tariff will bring back thousands of jobs to working-class communities across the United States, like the Stellantis Toledo Assembly plant.
“The UAW has been clear: we will work with any politician, regardless of party, who is willing to reverse decades of working-class people going backward in the most profitable times in our nation’s history,” Mr. Fain wrote. “These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country, and it is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the U.S.”
Professor Hong said the government might also offer other tax incentives so local automakers aren’t strained by the tariff, and other domestic companies will be more likely to support domestic automakers.
“Since the U.S. government is collecting these taxes, U.S. companies will be much more keen on supporting U.S. automakers, rather than Toyota or Honda,” he said. “Therefore, I think GM and Ford and Chrysler, these domestic automakers may actually work well with the U.S. government to come up with a constructive plan.”
While some are optimistic about what the tariff could do to help the auto industry, others want to see more.
“I advocated for this,” said Tony Totty, president of UAW Local 14. “This is what we asked for, but like I said, instead of just tariffs, we need a trade deal, so I hope he doesn’t stop here, and I hope he goes forward with actually fixing the problem.”
While the national UAW hopes the tariff will bring more jobs back to assembly plants, Mr. Totty said if the tariff leads to a recession, auto workers could be looking at layoffs.
“It’s almost like chemotherapy, right?” Mr. Totty said. “You want it to be effective enough to cure our problem without killing the patient.”
U.S. Rep. Marcy Kaptur (D., Toledo) also called for more action in a Thursday statement. Ms. Kaptur co-chairs the House of Representatives’ Auto Caucus and is a senior member of the House Appropriations and Budget committees.
“We must reinvest in American manufacturing and the working-class communities across our country that have been hollowed out due to broken trade deals and the burden of outsourcing,” Ms. Kaptur wrote. “I urge the Trump administration to work with Congress and assemble a task force to carefully negotiate reciprocity agreements related to the VAT tax that accelerated foreign imports into the U.S. for decades, eroding American production.”
Ms. Kaptur, who is the daughter of UAW workers, also said the union should have a seat and a say at the table in future discussions.
“They need assurances that the benefits of onshoring auto production at living and fair wages mean stability and continuity for those who work hard and constitute the spine of a strong American manufacturing economy,” she wrote. “We cannot forget those who have fought to keep our industrial regions alive, well, and competitive — such as at Toledo Jeep, General Motors, and the Ford Motor Company.”
First Published March 27, 2025, 8:55 p.m.
