{"id":25405,"date":"2025-04-08T10:00:52","date_gmt":"2025-04-08T10:00:52","guid":{"rendered":"https:\/\/www.etags.com\/blog\/?p=25405"},"modified":"2025-04-08T13:58:06","modified_gmt":"2025-04-08T13:58:06","slug":"automotive-tariffs-an-update","status":"publish","type":"post","link":"https:\/\/www.etags.com\/blog\/automotive-tariffs-an-update\/","title":{"rendered":"Automotive Tariffs: An Update"},"content":{"rendered":"

Happy Tuesday, friends and visitors.\u00a0 If this is your first time stumbling upon our blog here in the world of eTags, we welcome you!\u00a0 If you\u2019re returning to us like the loyal reader you are, a warm welcome back to you!\u00a0 Either way, we\u2019re happy to share this space with as we explore all things automotive.<\/p>\n

As you may be aware, we like to dip our toes into all things tag and title related – it\u2019s what we do here, and what we love.\u00a0 But there are also rules and regulations to consider, new and changing laws, car trends and motorcycle advances.\u00a0 We love these things too.\u00a0 And we\u2019d be remiss if we didn\u2019t pop back into this arena with the latest news regarding the tariffs.<\/a><\/p>\n

\"ImportWhat tariffs, you may ask?<\/p>\n

Here\u2019s a little recap for those of you that might not have heard about what\u2019s going on.<\/h2>\n

Last month, in March of 2025, President Trump enacted a set of new taxes to be levied on goods imported to the United States. This went into effect this month of April 2025.\u00a0 The tax comes with a whopping double-digit number of 25%. And this is in addition to import taxes already in place.<\/p>\n

So, what\u2019s the big hullabaloo? The big deal is that these extra fees have been applied to countries like Canada, China, and Mexico, who not only supply a big portion of the goods sent to the U.S., but as you can imagine, are quite heavily involved in the automotive industry.\u00a0 A significant number of vehicle manufacturers \u2013 both American and foreign \u2013 maintain factories and presences in the named countries. \"Stopped<\/p>\n

Everything from parts to full vehicles imported to the United States from these places now are subject to an extra 25% tax fee.\u00a0 And while the countries themselves do not pay these costs \u2013 the importer does. Meaning, that companies such as Ford, GM, Toyota, Audi, Dodge, Ram, and more are now obligated to fork over this extra money. And it follows that this expense must be passed onto the consumer. Or does it?<\/p>\n

Today we wanted to check in with what\u2019s going on in the automotive world. We want to know how automakers are responding. How are the people reacting to what can only be a significant surge in pricing on cars, trucks, SUVs, and motorcycles?<\/p>\n

Of course, this is a developing story and has not reached any sort of certainty just yet. But here\u2019s what we know this week:<\/p><\/blockquote>\n

Jaguar Land Rover (JLR)<\/strong><\/p>\n

This luxury brand depends on the United States for about 25% of their global sales, but as they have no manufacturing presence at all in the U.S., they have paused shipments on all vehicles. It seems this is a temporary stay, buying some time for the company to figure out just how they will deal with the tariff.<\/p>\n

\"LandThe \u201csimple\u201d solution would be for them to build a plant on U.S. soil, thereby avoiding import fees. This, however, would cost the automaker more than $1 billion and a minimum of two years lost in U.S. sales.\u00a0 So, for now, we are waiting and watching to see what\u2019s next for JLR.<\/p>\n

BMW<\/strong><\/p>\n

The German carmaker has promised to cover tariff fees on their vehicles being built in Mexico. This includes the 3-Series sedan, the 2-Series coupe, and their M2 model.\u00a0 But this assistance is \u2013 for now- only valid until the 1st<\/sup> of May. After that, no one knows if they will continue to import and pass fees onto the customer or find some other alternative.<\/p>\n

Stellantis<\/strong><\/p>\n

The manufacturer that keeps Chrysler and Dodge models under its umbrella will be enacting two different tactics for now.<\/p>\n