DETROIT – President Trump’s 25% tariffs on imported cars took effect on Thursday. The import tax has already triggered big moves by automakers, from layoffs to pauses in car shipments to delayed price hikes.
Starting May 3, the tariff will also apply to imported car parts, such as engines and transmissions, which could add to the cost of cars assembled in the U.S. That means if you decide to keep your older vehicle longer, keeping it on the road will cost you more money.
What tariffs amount to for Michigan’s auto industry is big uncertainty and perhaps economic disaster for smaller auto parts and systems makers that already deal with very small profit margins, said Glenn Stevens Jr., executive director, MichAuto, part of the Detroit Regional Chamber.
These same smaller auto suppliers spent a lot of money tooling up for what automakers told them would be a rapidly expanding electric vehicle market that has yet to reach double figures in overall vehicle sales.
To find out more, click on www.michauto.org.
To find out what is in store for Michigan’s auto industry, watch this video.
