President Donald Trump’s press conference laying out the remainder of his tariff policy revealed automakers would not be facing any additional tariffs beyond the 25% on vehicles and parts crossing into the U.S. Volkswagen is adding an “import fee” to vehicles hit by the tariffs while Ford is offering discounts to try to improve affordability.
Ford is now offering employee pricing to all customers through June 2 as it looks to help consumers with the tariff-based price increases.
On the heels of Trump’s press conference Wednesday, Ford announced it would offer employee pricing to all customers, under a program dubbed, “From America for America.” Ford manufacturers about 80% of its vehicles in the U.S., which means it won’t be hit as hard by tariffs.
The plan, which runs until June 2, covers basically Ford’s entire lineup — regardless of where the vehicle is built. Only its Super Duty pickups are not part of the discount plant. Ford is carrying plenty of inventory, reporting sales were down 1.3% in Q1, so this gives the automaker a chance to clear out some of dealer lots.
The other path
While Ford offers discounts, Volkswagen is going to path most are expected to travel: tacking on the increased costs to the window sticker. VW officials have told dealers, according to the Wall Street Journal, it will add an “import fee” to offset costs associated with the 25% tariffs.
Volkswagen is implementing an “import fee” to deal with the 25% tariffs that will be applied to many of its vehicles.
“We want to be very transparent about navigating through this time of uncertainty,” the company told WSJ.
VW’s unlikely to be alone. Some automakers will face bigger problems than others. Upstart EV maker VinFast, for example, is already struggling to move vehicles in the U.S. Now it will have to add a massive tariff upcharge to its vehicles — or take a big hit to its bottom line.
Other examples include BMW keeping prices unchanged for now while Ferrari is upping their price tags.
More Tariff News
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Other impacts
Stellantis is temporarily laying off 1,000 employees at five plants in Michigan and Indiana due to the impact of the tariffs.
Stellantis announced Thursday it was temporarily laying off 1,000 workers at five plants in Michigan and Indiana. The move happened because the company idled some plants in Canada and Mexico due to the tariffs.
“We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” Stellantis North America COO Antonio Filosa wrote in an email to workers, according to the Detroit News.
“Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations. These are actions that we do not take lightly, but they are necessary given the current market dynamics.”
Consumers will be the ones to fully feel the impact of new tariffs.
Overall, prices are expected to rise. Bank of America predicts the average increase will be about $4,000, but what kind of increase you’ll see is dependent upon how much you’re paying for the vehicle to begin with.
It’s also expected to make it harder for first-time buyers to get into more affordable models, slowing sales of those vehicles as well. Finally, used car prices likely with jump as consumers look for more affordable options, the demand will reduce used vehicle supplies forcing prices upward.
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