The New Tariffs: How Are Automakers Responding?

Good day, friends. We’re super glad to have you join us here in our humble blog space.  If you’re new to this page, this is where we dive into all things automotive.  That means we talk about our expertise: tags and titles and just about anything that relates to those two subjects. Things like title transfers, duplicate or replacement titles, as well as adding and removing names from a certificate of title.

We’re the reigning champions of registration as well, if we do say so ourselves. Every day we help folks with renewing their registration, with obtaining a new license plate and/or window sticker, with getting their hands on specialty plates, with personalizing tags, and with replacing lost, stolen, or damaged plates.

But we also get into various other topics that pertain to us. Basically, if somehow or in some way can claim a relationship to cars, trucks, SUV’s, motorcycles, RV’s or EV’s, we dig it.  Things like rules and regulations, changing traffic laws, trending and new vehicles, safety matters, and as we’ll see today, recent breaking news that directly affects the automotive industry.

Remember those proposed tariffs that Trump promised to levy on goods imported from Canada, Mexico, and China? Well, we’ll remind you: There was set to be a hefty tax increase on all goods arriving into the United States from these countries. Hefty, meaning a whopping 25% on things like cell phones, computers, appliances, furniture, clothes, oil, petroleum, aluminum, and of course cars, trucks, and auto parts.

To do a quick recap of how tariffs work, the taxes are not actually imposed on the exporters, but rather on the importers.

Meaning, that if China, Canada, or Mexico sends over a whole slew of products worth $1 billion, it’s not the manufacturers that pay, it is the consumer. The importers are made to shell out the increased tax costs, and more likely than not, pass on this extra expense to their customers.  And so while this isn’t an immediate direct hit on the countries hit with the tariff, it will inevitably end up in slower, fewer, or no imports from these places at all.

Trump’s motive, apparently, for enacting these tariffs is an attempt to direct the focus back to U.S. manufacturing.

It seems that his aim is to make way for more jobs, more factories, and more investments in the United States. Long term growth, it appears, is the ultimate desired outcome.

The automotive industry, which makes up a very large portion of the good exported from the taxed countries was due to suffer immensely from the increased fees.  Vehicle manufacturers in all three countries subject to the tariff were (still are) faced with either swallowing the increase and the subsequent decline in sales, or closing up shop completely and moving operations to the United States.  Both options stand as huge expenses for the automakers.

Seeing as the tariff officially went into effect earlier this month (March 5, 2025), vehicle manufacturers have been scrambling to find some sort of solution. And it seems that for now, there has been some sort of an accord found.  And it comes from the USMCA  (United States-Mexico-Canada Agreement. This trade deal holds a very convenient loophole for some car makers to slip through. In the agreement it states that if at least 75% of a vehicle is manufactured in the United States (while the other 25% can be made elsewhere), then it can be exempt from the new tariff. At least for thirty days. Which gives them until April 2, 2025, until the fees come into effect.

This means that major automakers like Ford, GM, Stellantis, and Volkswagen have been allowed a bit of a reprieve.

A few weeks in which to gather themselves and plan for the future.  Or pack up shop and move the bulk of their manufacturing to the United States. In return for this exemption, manufacturers have promised to increase their U.S. operations, transferring even more of their business to American soil.

From where things stand now, it’s doubtful that these vehicle giants will be able to make such major moves within a thirty-day time period, but many have reason to be optimistic. GM, Ford, and Stellantis have publicly thanked Trump for the delay in enforcing the extra taxes. They’ve all expressed appreciation for the exemption and acknowledged the president’s move to refocus and return major manufacturing incentives to the United States. It seems that the three automakers are in agreement with Trump’s vision.

Only time will tell, of course. With a few more weeks until the exemption expires, it will be interesting to watch this space and see how matters unfold. If anything, we’re rooting for the greatest good for all parties involved: from the manufacturers to the factory workers, the importers, and of course, the consumers.

Howsoever this situation resolves, one thing remains steadfast and true, and that is our commitment to our own valued customers.

Lucky for us, we have a truly great community of folks who consistently renew their registration with us, who turn to us for title duplicates and replacements, and who recommend us to friends and family for all title and tag services.  We love what we do, and we love to help people like you get all your vehicle paperwork done online instead of in line.

So skip that line, forget the appointment and all the waiting. Come visit us at eTags.com and let us assist you with all your title and tag needs. Because as always, here at eTags, we’re here to help!