Sat, 03 May 2025

Sat, 03 May 2025 Tariffs on car parts entering the US come into force

Import taxes were eased after carmaker outcry, but it's "still a big tariff", analysts say.

* A 25% import tax on engines, transmissions, and other key car parts has come into force in the US.
* The new tariff will raise costs for companies, leading to higher prices for customers.
* Companies have been shielded from pain so far due to a sales surge prompted by concerns about price hikes.
* General Motors expects $5bn in new costs this year as a result of the tariffs, including $2bn in charges on cars made in South Korea and exported to the US.
* The company now expects prices to rise 1%, instead of falling as previously forecast.
* Other car companies, including Stellantis, have withdrawn financial guidance for the year ahead due to the uncertainty caused by the tariff.
* Nearly half of vehicles sold in the US last year were imported from outside the country.
* Trump has softened his policies, especially regarding Mexico and Canada, after customs instructions issued this week made it likely that parts made in these countries will be spared the duties.
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