The car market’s about to get extremely weird. The White House’s auto tariffs, announced on Wednesday, are sending automakers into panic mode, re-allocating resources, re-adjusting pricing, and seeing how long they can hold off before taking serious measures. Although the full impact of these import taxes are yet to be felt, that hasn’t stopped some automakers from already making moves.
Let’s start at Infiniti, where the Mexico-built QX50 and QX55 crossovers are reportedly on pause for America, according to a memo picked up by Automotive News. Truthfully, the whole Infiniti brand could go on pause in America and most people wouldn’t notice, but the QX50 and QX55 make up a significant chunk of sales. Granted, they are sales Infiniti’s fully prepared to walk away from, with both of these crossovers set to be discontinued at the end of 2025. If they don’t end up coming back before that, consider this an acceleration of previous plans.
Speaking of pauses, Stellantis has stopped production at its Windsor, Ontario assembly plant that makes the Chrysler Pacifica and Voyager minivans, along with the new Dodge Charger, along with its Toluca, Mexico plant that builds the Jeep Compass and Wagoneer S. As the Detroit Free Press reports, “The pause will lead to temporary layoffs at the Warren and Sterling stamping plants in Michigan as well as the Indiana and Kokomo transmission plants and Kokomo Casting in Indiana, according to a company spokeswoman.”
This result of temporary job losses for thousands of workers has understandably drawn the ire of Unifor, a union that represents 4,500 Stellantis workers in Canada. As Local 444 President James Stewart stated in a media release, “Our members are concerned for their jobs and frustrated by the uncertainty that these unjust and needless tariffs are creating across the industry,” adding that “We are prepared to fight for our jobs with the full backing of Unifor members across the country.” At the time of publication, the UAW hasn’t issued a statement on behalf of thousands of affected U.S. Stellantis workers, but the immediate impact of these tariffs affects thousands of livelihoods across North America.
On a less grim note, let’s talk pricing. Volkswagen hasn’t issued specific price increases yet, but incoming shipments are on hold, and the automaker plans on adding a separate line item to its future window stickers specifically for tariff-related costs. Models on dealer lots right now aren’t expected to be affected, but we’re likely to learn more about how these tariffs will hit Volkswagen by the end of the month.
Meanwhile, Hyundai has launched what it calls a Customer Assurance Program to, um, assure customers that prices aren’t going to climb before June 2. Beyond manufacturing the Santa Fe three-row crossover, Tucson compact crossover, Santa Cruz compact pickup truck, and Ioniq 5 EV in Georgia, it’s likely that the brand has stockpiled enough inventory on the ground to last a couple of months.
As for BMW, price increases are coming soon, although we don’t know if they’ll change. Let me explain. A few weeks ago, Car And Driver reported that the Mexico-built 3 Series, 2 Series Coupe, and M2 will see a price increase on May 1. However, that was before the current extent of auto tariffs were announced, so final prices are anyone’s guess. Also, we still don’t know what’s happening to models from Europe, like the 5 Series sedan and Z4 sports car.
The only really clear auto tariff-related price hikes we’ve seen already come from Ineos, makers of the awesome French-built Grenadier SUV and Quartermaster pickup truck. The brand’s announced that it’s hiking U.S. price on both models to $80,455 and $94,500 respectively, increases of roughly 4.9 percent and 11 percent. Regarding the price increases, CEO Lynn Calder told Automotive News, “At 25 percent [tariff], the 5 percent increase on the Grenadier is sustainable,” which means that although it might cut into margins, it’s workable. Anyone who placed an order before April 3 or is buying off the lot won’t have to pay the new, higher prices, but new orders and future inventory will be subject to higher MSRPs.
At the same time, Ferrari has stated that models other than the 296, SF90, and Roma that land in America after April 2 will be subject to price hikes of up to 10 percent. If the 12Cilindri falls right at the top of that 10 percent band, buyers could be forking out an extra $46,400, assuming they haven’t ticked any option boxes.
Now, will buyers of $80,000 SUVs and half-million-dollar supercars care that much about paying a few percent more? Probably not, but it’s also worth noting that luxury vehicles usually offer higher margins than mainstream rides, so price hikes on them might be less than on, say, a Toyota Prius. Regardless, if the pausing of Infiniti crossovers and the price hikes on Ineos models are anything to go by, tariffs are about to hit product offerings and affordability.
Top graphic image: Ineos
Support our mission of championing car culture by becoming an Official Autopian Member.
-
One Thing You Can Do About Tariffs Right Now: Get Your Car Fixed
-
In A Surprise Move, 25% Auto Tariffs May Not Apply To Your Imported Dream Car. UPDATE: But You Might Get A Surprise 24% Tariff If Your Car Is Coming From Japan
-
Get Thee To A Showroom While You Can Still Afford To
-
Here’s How Interconnected The American And Canadian Auto Industries Are
Please send tips about cool car things to tips@theautopian.com. You could even win a prize!
Buyers of new Ferraris that “haven’t ticked any option boxes” = { }
VW’s idea regarding breaking out the tariff on the sticker is the first thing they’ve done in years that I think is a good idea. It’ll look like a port-installed overpriced option that can’t be removed!
The cars that are on the lots may not be seeing their sticker prices increased but I’m quite sure that money is being swept from the hood and there will be less wheelin’ and dealin’ going on.
No matter which/when you buy, rest assured that insurance prices are going to notch up another, what do you think, ten percent at minimum? As will rental car prices.
And lastly, car sales are bound to go down, not just due obviously to an increase in prices in general, but NOBODY wants to be the guy who bought a new car with all the new fat baked in only for a week later his highness to declare the war over and no more tariffs and then prices sink again (albeit not to the level they started at). As illogical as the man is, nothing is off the table. I see that scenario happening for maybe a year or more, then a period of relative calm but still depressed sales levels, and then for the last year of his term everyone holding on if they can and hoping a new administration (if there is an election) will do what they can to remove the tariffs again and waiting to make any large purchases such as a car.
“TARIFFIED”
A missed opportunity on the lead image, if I say so myself.
Kokomo is definitely a place you don’t want to go to get away from it all now.
Although Aruba, or even Jamaica, aren’t looking so bad right now…
Ed note: Those Hyundais are actually made in AL, not GA; you were probably thinking of Kia (and to be fair, the two plants are about 75 miles apart on the same road, by design)
A larger comment, though, is about the knock-on effects of manufacturers jacking up prices on cars that aren’t heavily affected by tariffs just because they can. We saw this during Covid almost everywhere, it’s like once the consumer is tested and has proven they’ll find ways to continue affording things, the floodgates are open.
Yes. Your are correct. Prices never go down ever. If prices go up on certain things then parallel products that aren’t involved also go up.
Capitalism is now imbedding itself into government.
I didn’t know about that Ineos pickup. That thing looks sweet! It would look better as an extended cab, tho. I hate how everything has to have 4 big honkin doors nowadays to be remotely sellable.
They’re used as sedans and minivan replacements, so those doors are more important than the bed, towing or off-road capabilities for 99% of truck buyers now.
Nissan and Stalantis are sunk in the US.
Give the UAW some time on that statement. Fain has to come up with just the right spin on how losing thousands of jobs is good for his union.
It’ll be interesting to see how short the UAW membership’s memory is. A few days ago he was telling everyone how much he loves licking Trump’s boots and how awesome these tariffs were gonna be.
He was completely ignorant of The union busting attitude the current administration would bring. I really can’t figure out where this guy is. That coffee cup looks embarrassing now.
Genuinely curious how this will play out in the next year. We have a lease expiring in November this year which were were hoping to just dispose of and lease another (Volvo) but are worried what the updated MSRPs may do to leasing. On the contrary, I am curious if residual values will reasonably also increase so that the total depreciation paid through by a lease may be less affected.
Either way, now’s a good time to not have to buy a car…
That was my concern with doing a lease and all the good BEV leases. I guess they still make sense but where you end up after the lease can be concerning. I guess it’s always good to have a surplus car if you can to give you some breathing room.
“At 25 percent [tariff], the 5 percent increase on the Grenadier is sustainable”
Translation: Um, yeah… We’ve been overpricing these by 20% the whole time… Thanks for playing!
That was my first thought as well. If they’re still willing to sell these at a 20% revenue cut the margins on them may be huge.
Or this is the first of several increases if the tariffs don’t go away
They are likely seeing how much the competition will raise prices.
Remember that the profits are effectively split in some manner with dealers, so some of the pain hits them instead of the manufacturer.
It should be understood that the tariff is not based on the suggested retail price of the product. It is based on the price paid by the importer. So, that price would be (I sure hope) far below the invoice price paid by the dealer.
“Temporary”………..as in at least 4 years ??
…or until Ferrari opens an assembly plant in Alabama.
The only Ferrari model that Ferrari would OK for foreign manufacture would be the Purosangue
if a cabinet invokes a 25th amendment it might take less
Well, depends on what happens in the midterm, tariffs are constitutionally a power reserved to Congress, however Congress has passed laws delegating that power to the President, because Congress is chronically lazy and doesn’t want to really do its job and its just easier that way; but that also means that Congress could take that power back at any point, provided they have the votes.
…. And Trump doesn’t just ignore them and the courts.
Votes or spine?
Either/or, I guess. The Senate did pass a resolution against the tariffs with some Republican support, but, then, its totally symbolic without the House, and the House will never follow suit, and it is easier to look tough when you know your actions won’t lead anywhere
I sure hope those rubes that voted for the psycho in office see how incredibly dumb and self-inflicted this pain is before it’s too late. But they won’t because they drank the kool-aid and won’t swallow their pride to say they were wrong – despite the writing being on the wall since at least 2016 that this shit would go this way.
They’ll just get mad China isn’t paying it. They won’t be able to explain why or what that means, or how it concerns every other country. But this is China’s fault, trust me
Well, Mexico didn’t pay for the wall either.
It’s already too late.
On other sites with public message boards, the MAGA’s are fully onboard and still taunting the liberals. I fully suspect that if they do finally acknowledge any pain from El Presidente’s policies they will blame it on Biden, Obama’s tan suit, or Hillary’s emails.
I’d be interesting in hearing how the Maga employees in the Indiana plant that are being laid off are spinning this.
But not their own emails, because those were different…or something.
r/Conservative is mostly not at all happy about this. Sure, the MAGA idiots are onboard but the other flavors of conservative haven’t drunk the koolaid quite as heavily.
That’s because Trumpism is its own thing, much like Peron’s Justicialism, the only strong consistency in its ideology is just whatever Trump has decided it should be at the present time, and his hardcore supporters will go along with it
It is fealty to a man. The Old Testament had a story about a golden bull
MAGATs are a Lost Cause (TM) but if we peel off 10% or so of voters, it will be a wipeout come the next elections. The special elections a few days ago already show such margin shifts.
They have all gone along. I have doubts about being an innocent bystander.
They can’t admit they were wrong and made a mistake because that means they hurt themselves. The entire point of this was to target a group they disliked (take your pick) to hurt. Because they’re obstinate and defiant simply because they dislike change and have made every decision for the last nine years over that, changing their own opinions makes them feel like they’re freefalling and nothing means anything anymore.
Unfortunately there is also a horrifically large contingent of folks that when pressed on anything regarding this nightmare of an administration will, in all sincerity, start waxing religious.
There’s not much point in continuing the conversation after arriving at this subject. It’s here where I’ve had seemingly normal people delve into why the end times are afoot and this is the real reason the current administration is doing whatever it’s doing at any given moment. Any talk of trade imbalances suddenly becomes pretty moot.
This is also a reason I’ve heard for why we shouldn’t waste time or money fighting climate change as global warming is to be looked at as some kind of welcomed event in that it will usher in the end times (and they’ll finally get confirmation that they’ve been correct in what they believe in).
Tldr: a lot of people would rather millions die than have any doubt in their personal beliefs.