New U.S. Customs and Border Protection guidance confirms zero tariffs on Canadian auto parts compliant with the Canada-U.S.-Mexico Agreement (CUSMA), offering relief to the North American auto industry. This exemption, however, excludes knock-down kits and parts compilations. The decision follows intense lobbying from automakers concerned about the economic impact of previously announced tariffs. President Trump’s administration also implemented a rebate program for automakers assembling vehicles in the U.S., further mitigating the effects of the tariffs.
Read More
Volkswagen, facing the impact of tariffs on imported vehicles, is reportedly planning to introduce an “import fee” on its tariff-hit cars, according to the Wall Street Journal. This move highlights the direct impact of tariffs on consumers and the strategies companies are employing to manage these increased costs.
The added fee is intended to make completely transparent the additional cost incurred due to the tariffs imposed on imported vehicles. By clearly labeling this increase as a separate line item, Volkswagen aims to shift the burden of explanation and responsibility onto the entities imposing these tariffs, and allow consumers to see exactly how much more they are paying.… Continue reading
President Trump’s new tariffs, taking effect April 2nd, are expected to increase car prices by $4,000 to $12,000, with trucks potentially rising by $8,000 and electric vehicles by as much as $12,000. The President stated he hopes prices rise, believing this will encourage consumers to buy American-made vehicles, and confirmed the tariffs are permanent, aiming to counteract what he considers decades of unfair trade practices. These tariffs, applying to both foreign vehicles and parts, are already causing concern among dealerships facing significant price increases and have been met with international condemnation.
Read More
In a private call, the President warned auto CEOs against raising prices following his new tariffs, implicitly threatening retribution. This action is viewed as an abuse of power, further undermining the President’s stated goal of rebuilding the nation’s industrial base. The tariffs, including a 25% levy on imported vehicles and parts, are projected to significantly increase auto prices and harm the auto industry. This contradicts the President’s stated aims and undermines the transition to a green future. The President’s actions expose the absurdity of his economic policies.
Read More
Canada is preparing a strong response to what’s being perceived as an attack from the US, and imposing tariffs is a very real possibility. This isn’t just a federal response; provincial governments, like Ontario’s, are heavily involved, recognizing the significant impact on their automotive industry centers such as Windsor, Brampton, Etobicoke, Markham, and the Waterloo region—the heart of the Great Lakes auto cluster.
The situation is viewed with a seriousness that goes beyond mere economic considerations. There’s a widespread sentiment that the current US administration is actively harming its own interests, both domestically and internationally, and that this behavior warrants a forceful counteraction.… Continue reading
Facing intense competition from China and high manufacturing costs, Volkswagen CEO Oliver Blume announced necessary cost-cutting measures to secure the company’s future, including potential plant closures and job cuts. This announcement was met with significant backlash from approximately 20,000 workers at the Wolfsburg plant, resulting in widespread boos and walkouts by approximately 100,000 union members. Blume emphasized the need for decisive action in a rapidly changing market, highlighting the immense price pressure and the urgency of the situation. The tense situation underscores the challenges facing European automakers in a competitive global landscape.
Read More
Trump’s call for a “bloodbath” has sparked controversy and debate, with many questioning whether it was meant literally or metaphorically. However, the reality is that the context in which Trump made this statement is crystal clear. The “bloodbath” comment was in direct reference to the auto industry and the potential economic consequences of implementing tariffs on cars made outside the US.
There is no room for ambiguity when Trump explicitly outlined his plan to impose a 100% tariff on cars manufactured abroad, particularly those from China. His warning about a “bloodbath” was a stark prediction of the impact on the country’s economy if these measures were not put into place.… Continue reading
John Q. Hosedrinker 
Matt Underwood