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
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Mazda is screwed and that pisses me off. Only the CX-50 is made in the US while all others are made in Japan. The CX-5 will likely immediately stop being shipped here. All for no reason other than a mentally unwell narcissist getting his rocks off with all the power and control that he can exert over the world markets. Thanks for wrecking my retirement accounts as I near retirement a**hole.
I can’t manage to muster sympathy for Ferrari buyers, but I’m a grouchy prol.
That Hyundai Ionic 5 looks lovely in orange… I’ve never seen that in person: Ionic 5s are always monochrome except for that one grey-blue. I suppose the orange is only for buyers who order the “N” version? Folks who want single motor/regular battery versions of EVs might also want nice bright saturated colors.
A lesson from a peronist country: do NEVER out-Peron the Peron himself. If you guys don’t react, in 5 years you’ll be Belarus. At best.
From what I can tell, this whole thing was designed to decimate the stock market so a few billionaires can buy up what they don’t already own on the cheap. So, anyone voting for billionaires, you have only yourselves to blame when you can’t afford that Carolina squat on your $150,000 pickup.
Correct. Just yesterday, trump said ‘This Is a Great Time to Get Rich’.
All unforced errors by an utterly stupid and unwell man. I had planned on retiring soon and have now watched my life’s savings get decimated.
Sorry about that, but it’s a booming, beautiful concept of a plan at work here. /s
OTOH, do I ever feel the pain as well thanks to Turd. Am an old now, and rely on income from my so called investments to exist.
Thanks to the idiocy of this imbecile’s action’s my net worth dropped by 30% in two days. Will it come back? A better question might be will I live long enough to fully recover from this?
Thanks for listening. Gotta rant to someone and you seemed like a good victim. /s
Right there with you, brother. Major health issue took me out of the workforce several years earlier than planned, with the related shortfall to retirement finances. Thankfully, I’ve been able to afford health insurance for the medical care that has kept me upright the past 7 years. Despite chemo treatment 3 days ago, I’m joining one of the local Indivisible protests this afternoon.
Wish you the best friend. Chemo is almost as bad as the disease they say.
I appreciate your willingness to do this today, despite your situation.
Respect.
I’m glad you are willing to fight this stuff.
I lost my wife to cancer a couple years back.
Her’s was too far along to do anything but send her home for hospice.
Except she never made it home…
The Turd’s COVID bullshit was a huge factor in the fact she could not be diagnosed before it was too late..
This partially explains my never ending anger and resentment towards the Turd in Chief…YMMV
Once again, hang tough amigo!
I am so sorry for your loss, my friend. I cannot imagine the heartbreak. I share your outrage at The Turd and all the sycophants in his administration, Congress, and state and local government.
I just got back home from the Indivisible/Hands Off protest in Troy, MI, about 1.5 miles south of David Tracy’s former humble abode before he went Hollywood. There were thousands of people at the protest — it was an inspiration for me to get more actively involved.
I have three married adult sons, four grandchildren, and a fifth on the way. As I said to my family, I’m getting actively involved not mainly for my generation, but for my kids, grandkids, and the least among us.
Unite and Resist!!
It’s ok for others though, bc they will buy your newly cheap stocks to sell them right back to your 401k managers for a chunky profit. So well planned I’d say actually, not hard to foresee a market crash after the moves pulled so far.
Same. I can’t even bear to look at my retirement accounts right now. And it will get worse.
Who knew it would not be radical environmentalists that destroyed the North American auto industry but Cheeto Jesus.
Inflation is sure not going to go down anytime soon.
Has anyone ever won an international trade war?
Nope. See “Smoot-Hawley” Act of 1930. Hint: it’s Depressing and it’s Great
Holy crap. I just realized that Trump got jealous hearing about the “Great Depression” and decided to give us the “Greatest Depression”.
I’m convinced that part of his psychopathic tendencies is that he gets his rocks off knowing that he alone has so much power that he can destroy the world’s financial markets.
“You know, they call it the great depression. But it wasn’t that great, really. Now, thanks to me, your Favorite President, we’re about to have the Greatest, most Beautiful Depression you’ve ever seen, folks. Believe me. It’s gonna be Tremendous. No one does Depressions better than me, that’s what they’re all saying. MAGA!!!!1!!”
Buyers of new Ferraris that “haven’t ticked any option boxes” = { }
So funny just on its face
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.
I hope you’re right but I’m worried we might be in sunk cost fallacy land: we’ve gone this far and it’ll be all for nothing if we stop now. We just stay the course and it’ll all be worth it. I really hope I’m wrong, b/c otherwise it’s terrifying.
“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…
Bermuda and Bahama be a great place to take yo’ purdy mama!
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.
Difference was, during COVID a lot of folks had a lot of money without many ways to spend it. Feels different this time, and I don’t see any stimulus checks coming from this administration. Then again, it’s nothing a 144 month loan cant fix.
Well, even without stimulus checks, at least I can count on the one GOP stalwart, which is helping enrich people with large stock investments.
.
.
.
DAMMIT!
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.
Interestingly, they do have a chassis cab variant, although it’s still a 4 door cab.
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.
I spent the better part of my worklife at one of the Detroit OEMs, starting in the UAW working in plants and eventually moving into management. I was always a supporter of the UAW throughout my career, and continue to be today.
I was encouraged by Fain’s tough vocal stance when he became the UAW President in 2023 and through most of 2024. Now it seems his behaviors and positions are becoming almost as unstable as the billionaire tech bootlickers, CEOs of major law firms, etc.
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
That has me thinking of them doing something like a return of the Dino sub brand, to distance vehicles not built in Italy.
Haha Ferrari building the “Pure blood” in America would be hilarious to me. The name already is a joke, so that would just feel like doubling down on the joke and I love it!
if a cabinet invokes a 25th amendment it might take less
Have you seen who’s in this cabinet? Trump may be one of the more stable ones in that bunch.
No Team of RIvals in tRump 2.0. All sycophants. See: How to Subvert Democracy in 5 Easy Steps
Good luck with that. two handed drinking a water glass…….
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
The biggest single obstacle is Speaker Johnson, who controls what comes up for a House vote. He’s currently so far up Trump’s ass he can see daylight between his dentures.
The biggest problem is that nearly every Republican in Congress is smooth down there like a Ken doll. Except for somehow the 2 females.
Man I didn’t realize how much I’d miss Mitt Romney and John McCain!
Just watch Mike Johnson next time he’s standing next to Trump while Trump spouts bullshit. Johnson really looks like a man who knows he sold his soul to the Devil and can’t back out of the deal. If he wasn’t such a sanctimonious little shit I’d almost feel bad for him. Almost.
Trump would also have to sign any such bill, and he’s not going to sign anything that takes away his power, and even with the small amount of R support for it, they can’t override a veto.
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.
Genuinely curious. If anyone come across any interviews, please share the link.
Blame Canada
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.
I’m an atheist now but I was devoutly religious till I was 18. I saw so much of that in the church, and I still see it now from some of my religious relatives. Even ones who generally hold moderate views on other issues, have that whole “end times” mindset going on. Or that “God uses the most unlikely people to carry out his plans,” etc.
I had an interesting discussion about this a couple months ago, with the whole delusional “God spared me so I could save America” statement. Suffice to say, the other person shut right up when I said “No, for one to make such a blasphemous statement as proclaiming themselves elevated above others by God is purely egotistical. He wasn’t spared by God, he was f**king lucky he wasn’t killed and that’s all there is to it.”
I gave up Catholicism for Lent
The whole truth is in the Biden kid’s notebook.
I read that on Face Book.
So it must be true.